Financial Independence Portfolio Breakdown

Passively Managed Portfolio – My passively managed portfolio focuses on low expense ratio funds that track the domestic and international stock markets. I avoid exposure to bonds as I am in growth mode and I put more emphasis on the domestic as opposed to international markets. I do not re-balance these holdings often.

    • FXAIX
      • Tracks S&P 500
      • .015% expense ratio
    • VTSNX
      • Tracks international index
      • .08% expense ratio
    • VANGUARD INST 500 IDX
      • Tracks S&P 500
      • .011% expense ratio
    • BTC RUSSEL 2500
      • Tracks mid and small cap stocks
      • .040% expense ratio
    • GLOBAL DIVERSIFIED – Could not find a link for this as it may be a Fidelity only fund.
      • Blend of stocks and bonds with a goal of 5% return on top of inflation
      • 1.924% expense ratio
      • Going to sell this and redistribute into Vanguard INST 500 IDX and BTC RUSSEL 2500. The expense ratio is too high and I already have exposure to international market via VTSNX. Would be losing some nominal exposure to the bond market.

Actively Managed Portfolio – My actively managed portfolio is informed by the core holdings of my passively managed portfolio. The goal of my actively managed portfolio is to outperform my passively managed portfolio. I add to these holdings on a monthly basis and look to re-balance periodically based on market conditions and macro-economic trends.

  • Large Positions [greater than 30k per position] – My large positions are populated by reliable money making stocks with excellent financial health and moderate to high growth potential. A secondary goal is to be isolated from China since the macro-economic trends are hard to predict. AMZN, GOOG, V, and WM are all relatively isolated due to being either completely domestically focused (WM) or being naturally separated from China by either being locked out of China or the market segment being dominated by a strong Chinese competitor (AMZN, GOOG, V). AMD is a notable exception to these rules in that it is neither a reliable money maker or isolated from China and is the only speculative growth position in my large holdings category.
    • Current Holdings
      • V
      • MSFT
      • AMZN
      • GOOG
      • WM
      • BRK.B
      • AMD
    • Currently Watching
      • VPU – Utilities ETF (bearish outlook)
      • QQQ/VGT – Technology ETF (bullish outlook)
  • Medium Positions [between 10k and 30k per position] – Medium positions are stable dividend stocks that are trade war independent. I use these positions as reliable income stocks via their dividends and selling monthly covered call options against them. Also, I hold a sizeable cash position in a 1.85% APR savings account that I use as dry powder for market downturns. My goal with these positions is to maintain > 10% yearly appreciation.
    • Current Holdings
      • VZ
      • O
      • Cash
    • Currently Watching
      • F
      • T
  • Small Positions [less than 10k per position] My small positions are mostly moonshots or speculative positions that can easily go to zero because they are shit companies but also may explode in value because they are disruptive. The proportion of my small positions to my overall portfolio is minimal so it’s okay for me to be stupid here. There is a lot of churn in this space as I am always trading options or buying and selling. My main goal here isn’t to make a return but to gain experience and knowledge trading options. GLDM, which is a gold ETF, is an obvious exception. GLDM is a bearish hedge that I took since commodities are extremely cheap and I expect it to rise as the dollar weakens. This position can be sold off and re-positioned into a growth position in the event of a market downturn. I expect to continue to add to this position until it exceeds 10k.
    • Current Holdings
      • TSLA
      • GLDM
      • LYFT
      • UBER
      • BABA
      • SCHW
    • Currently Watching
      • GPRO
      • FIT

 

One Month Performance vs. SPY: Nov 2019 to Dec 2019 performance for my portfolio was 4.3% vs 3.62% for SPY

1 Year Performance Actively Managed Portfolio vs. Major Indices

Screenshot_20191214-195400.jpgScreenshot_20191214-195403.jpgScreenshot_20191214-195408.jpg

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