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The ✨ Evolution of the Perfect 💼💰 Investment Portfolio
Unbroken Investing
May 04, 2024 • Estimated Reading Time: 6 minutes
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Newsletter Content
Here’s How The Market Has Been Performing*
Name | Current Value | 1 Week Return | 1 Month Return | 1 Year Return |
|---|---|---|---|---|
DJIA | $38,675.68 | 1.14% | -1.15% | 15.74% |
S&P 500 | $5,127.79 | 0.54% | -1.60% | 25.35% |
NASDAQ | $16,156.33 | 1.43% | -0.70% | 34.35% |
Bitcoin | $ 62,854.55 | 0.25% | -4.73% | 116.69% |
Ethereum | $ 3,112.52 | -0.17% | -6.15% | 63.16% |
*As of Close of Current Market Week
Our Favorite Unbroken Investments
Name | 1 Month Return | 1 Year Return |
|---|---|---|
Fund 1 | 16.97% | 155.64% |
Fund 2 | 12.37%% | 184.92% |
Fund 3 | 5.83% | 156.63% |
Fund 4 | 16.92% | 124.12% |
Access these investments by joining the Unbroken Investing community. |
Unbroken Insights
The Evolution of the Perfect Investment Portfolio
If you are old enough…you may remember what we did 40 years ago…we made phone calls with a push button phone using land lines. We watched four TV channels (Fox TV did not start until 1986) and financial advisors usually recommended an investment split of 60% in stocks and 40% in bonds. Many investors have not upgraded their investment strategy very much since then (they just buy the stock funds online instead of at a broker). Let’s call that Portfolio Option #1.
While the strategy of 60/40 split is not bad, it has not changed to keep up with the amazing opportunities that have been developed in the last 20 years.
With the launch of crypto in 2009, a new investment option was created. With innovations in technology and efficiency, owning real estate has become MUCH easier in the past 20 years. Therefore, an updated portfolio—Let’s call it Portfolio Option #2—would be to split funds between Stocks, Real Estate, Bonds, and Crypto. Perhaps consider something like 40% in stocks and 20% in each of the other three. That is certainly better than only having money in stocks and bonds because of the long term stability of real estate and the upside potential of crypto. But let’s take it one step further…
The portfolio I have been using for the past few years takes advantage of the development of crowdfunding (legislation passed in 2016) and updates to hedge fund regulations. We’ll call it Portfolio Option #3. My overall portfolio is split into three categories and each of those is further diversified.
50% of the portfolio is in moderate growth investments. In this category, I have stocks (mostly diverse ETFs tied to indexes or focusing on dividends) and real estate and agriculture. Of these, the stocks average nearly 10% a year, the real estate a little more, and my agriculture generates between 15% and 40% per year!
20% of the portfolio is in safer investments that are secured and fairly liquid. These include gold, bonds, private loans (secured by real estate), and a little cash. Those private loans are usually at 12-14% interest, so even that safe money historically outperforms the stock market.
30% of the portfolio is more aggressive. By having a solid “base” with the other 70%, I am able to be more aggressive with these funds. Also, by diversifying these funds into several areas, a loss here or there is not a major impact on the portfolio. Within this portion of the portfolio, I have crypto coins and tokens that I hold. I also have crypto mining that is paying me 6-7% per month. I like it because it creates coins every month whether the coin price is up or down. If the price is up, the coins are worth more. If the coin prices are down, I still make money (when Bitcoin was below $30K, I was still making 4-5% per month with the mining fund).
Another key part of the more aggressive part of my portfolio are the private hedge funds. As of right now, I am in several of them and they are all producing gains of more than 10% per MONTH and some have already been doing that for a couple years running. Although these are higher risk, my strategy is usually to pull out half the gains every month. That way, I can diversify those gains and the principal still grows.
The final part of the more aggressive part of my portfolio is to own businesses and/or startups. I now own 8 e-commerce businesses that are all managed by 3rd parties. Every month, I get several thousand dollars of passive cash flow from them. On the other hand, I also invest in startup businesses with the knowledge that it will be 3-7 years before those investments turn into anything.
The two goals of any portfolio should be to 1) earn the highest returns possible while 2) providing as much protection as possible.
Portfolio Option #3 gives you the ability to earn some fantastic returns while also providing better diversification than was possible…even just 10 years ago.
How are you evolving your investment strategy? Each week Unbroken Investing members discuss the latest approaches to better investing; login or join to take part in the discussion.