My Portfolio Composition

in #money8 years ago (edited)

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I am letting you inside my finances and I will reveal to you the composition of my portfolio. My portfolio is a little bit unusual, pretty risky, but it's calculated risk. I am not a cowboy gambler, but I like big profits, so this is my style of investing. I don't believe in complex portfolios, I think simplicity is the best, so I only invest in a few types of assets, but only in assets that I believe are winners.

First of all I divide my capital in 2:

  • Actively used capital (30%)
  • Passively invested capital (70%)

I consider passive investment any asset that takes more than 1 month to make money or rise in value. Obviously the passive assets are for longterm holding, and in some cases they have less risk and less reward than actively traded/invested ones. But this is not always the case, so let's continue:



Actively Used Capital

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My active capital is:

  • My dayjob: which generates income monthly
  • Trading Cryptocurrencies: mostly investing in 2 weeks → 3 months horizons

My dayjob is obvious, it's an asset that generates money for me monthly in the form of a paycheck. Trading cryptocoins is evident as well: I look for interesting investment opportunities, like how I got Monero right, and others, to make some money. It is a burdening task so I choose to trade on larger timeframes looking for monthly investments rather than daytrading.

I used to daytrade stocks back in the day, but after the 2008 crisis, I try to stay away from them. The market is just too manipulated by big parties (central banks) that my prediction models become less accurate. Prediction only works on liquid, efficient markets, and rarely on manipulated ones. Therefore I hardly trade stocks, commodities or God forbid: derivatives, because I don't trust these markets.



Passively Invested Capital

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Most of my money is in long term investments, and here the composition might shock you, so brace yourselves:

  • 75% Bitcoin
  • 19% Farmland
  • 6% Gold

Yes ladies and gentlemen, this is it. It might look like a crazy portfolio, but it's damn profitable. I know I might sound like a hypocrite that I said in previous articles to diversify, and yet I have a shitty portfolio like this, but I made 350% profit in 2 years so who the F. cares?

Yes I think diversification is good, but above all, making money is better. I just make huge profits so forgive me for my hypocrisy.


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Gold:

I have already talked about gold in my previous article. I am not a gold bug, nor a gold hater, but I am not really into it, I have my skepticisms. Overall I am bullish, but I don't like the paper gold ponzi schemes that the banks are running. I think when it collapses, it would create huge whipsaws, not to mention the risks of confiscation, it is just too much risk for me for a potential 50-100% profit at best, it is just not for me.


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Farmland:

I have farmlands in other countries, where they are extremely cheap. I think food and agriculture will remain a top market for a long time. Especially now that people reject GMO food more and more, natural food will become a top priority.

I have bought the lands for extremely cheap price, it really barely cost anything, and I have rented it out to local farmers, for a very small fee. Most landlords literally "tax" their renters at the % profit they make, like they were some aristocrats.

I am pretty libertarian so I only take a flat fee regardless of how much profit they make by selling the crops. It's fair for the farmers, and it also provides me with a no risk side income. The farmers are very poor so they could not have had money to buy the land themselves (despite being very cheap), so I make them a huge favor by letting them use my land, I literally provide them with a job opportunity.

It can only go higher, it is also a country that just allowed foreign land investors recently, so a lot of new money will come very soon pushing land prices higher. I already made 9% profit from the price increase this year, not including the rent.


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Bitcoin:

It is fairly obvious. I consider Bitcoin the reserve currency of the world, and not the Dollar. It made me more than 300% profits, and it's very stable and safe in my opinion. It is really the flagship of the new economy and new monetary system. It has so much potential in it, that I expect it to go to 10,000$ eventually, so I am betting most of my money on it.

It is what it is, I find bitcoin the most suitable for my savings and investment needs. Most people call it a wild speculative gambling, but I call it sound strategical positioning. I barely keep any money in banks due to fear of bail-ins. Most people think that an insured savings account is safe, but I'd rather keep 75% of my money in Bitcoin than 1% of my money in a Bank.

After 2008, I woke up, after the Cyprus mass-theft and the Greek fiasco, I could just not trust a bank anymore. I cashed out and later I bought bitcoin. Unfortunately I missed the 2012-2013 bubble, but hey a 300% profit is still acceptable.

So a bank account is unthinkable for me, money under my mattress is too silly, and gold coins in my safe is too risky, so I have settled at Bitcoin. It is what it is, I find it the only safe place to hold my savings, in this world of grand thefts and scams.


Disclaimer: The information provided on this page might be incorrect. I am not responsible if you lose money using the information on this page! This is not an investment advice, just my opinion and analysis for educational purposes.


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Thanks for reading and commenting.

I haven't added my car and my house to the list, because they are not for sale. If an asset is not for sale then it's not an investment object in my opinion. I also have 0 DEBT.

Interesting.
I'm only 22. After graduating University I landed a 55k paying job and only been there for a year. No loans, no payments, no debt. So I have a substantial amount of money to invest. Right now I have about 2% in gold and silver. 3% in Steem. 2% in Bitcoin. 5% in physical cash and unfortunately the rest in the bank.

I wanted to know what your security measures are for your passivive capital (more importantly Bitcoin) And if you don't mind describing the process for owning land? Thanks! -wwworld4us

Interesting , you are a very lucky person to make 55k at 22, I wish I had the same luck back then.

Well I rather not describe my bitcoin security measures, otherwise it's not secure anymore is it?

For land it's easy, many countries offer land to invest for foreign investors. It is very cheap and you can even apply to citizenship after if you have invested a lot. The good think about foreign land investment is that you only have to pay 1 tax, the income tax. Governments are very nice to tourists and foreign investors and very evil to their own citizens. They make their own citizens pay pension, healthcare, and other BS taxes on their land investment profits, but if you are a foreign investor usually you only have to pay income tax only. It varies at every country what their law is, but usually it's like that. In my opinion it's not healthy to invest in the country your are resident in, because of all the shitty taxes you pay on the profits. Foreign investments are much less taxed on average.

Not to mention with 55k you can buy up a whole village in some poorer countries, so it would be a good investment in my opinion. There are always risks, but in my opinion cheap land is really worth it.

It doesn't look crazy to me. I think is very smart for current time.

Thanks, but some old "classic" investors might disagree with us. They overdiversify and then they wonder why they only make 5% a year instead of 150%. But they most likely lose a lot of money in financial crashes, instead we are making money. Bitcoin made huge increases after the Cyprus bail-in.

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