An Investor's Log, Week 4

So, after a rough month, let's take a look at my portfolio vs the world:



Apparently, unless I put a considerable amount of money on oil-related assets, there's no way I could have spared myself the loss I am now faced with. So starting from last Monday, I am putting some money (target 10%) on an oil-related FOF, and waiting for the chance to buy some US tech/growth funds.

Besides, I want to talk about something that may benefit an investor like me in the long run. 

1. It's necessary to build a global market dashboard for yourself, both to get the vibe on the market and to know how you behaved relatively. 

2. Also needed is a portfolio dashboard which shows the percentage of every asset you bought. Tag them according to the global market classification (the market explains 80% of the return of individual assets). That way you can clearly see what contributes and what not.

3. Focus on the trend and the reasonings behind it. Make sure you do understand the narrative, not just the indices and all those macro bullshit.

4. The portfolio mindset is actually a good way to fight against uncertainty. Unless you can be 100% sure of your forecast of any asset (that is, you believe you have unique information about it), anything apart from your long term portfolio shape is increasing the risk, not adding the return. The better way to do it is to have a benchmark percentage, and dynamically adjust your asset around it (when price goes up, percentage is higher than the benchmark, you sell some to align with it; when price goes down, but some)

Let's see how April plays out.

Comments

Post a Comment

Popular posts from this blog

Family education is not that important

(translated from my Chinese blog) This is my new project, “Nietzschean Philology”. In each installment, I’ll read a passage from Nietzsche’s original writings. By practicing text analysis, we can enhance our ability to understand the world. The reading of "We Philologists" continues. Section 11 continues the discussion of external factors hindering genius individuals from the previous section, shifting from professional education (unqualified philologists) to family education. It's no surprise that Nietzsche views the importance of family education very lowly; ultimately, there are too few cases where families can provide the life possibilities for geniuses. Let it be considered how differently a science is propagated from the way in which any special talent in a family is transmitted. The bodily transmission of an individual science is something very rare. Do the sons of philologists easily become philologists? Dubito. Thus there is no such accumulation of philological c...
Read more

The value of life depends to a great extent on pure hazard

(translated from my Chinese blog) This is my new project, “Nietzschean Philology”. In each installment, I’ll read a passage from Nietzsche’s original writings. By practicing text analysis, we can enhance our ability to understand the world. "We Philologists" Section 1. Starting from the two main themes of classical linguistics and education, Nietzsche discusses how the specialization of education leads to premature decisions that result in foolish choices in life. He also explores the dilemma of choosing a career: it’s impossible for a person to know what kind of career they should pursue while actually engaging in that career at the same time. As a result, life becomes something determined purely by chance. To what a great extent men are ruled by pure hazard, and how little reason itself enters into the question, is sufficiently shown by observing how few people have any real capacity for their professions and callings, and how many square pegs there are in round holes: happ...
Read more

Can Writing be fun?

 My dear friend suggested, after reading my last post, that writing can have more than one purpose, and what I was arguing, namely writing as a form of thinking, was merely one of the many purposes for writing. For instance, writing can be for remembering; writing can also be for fun. Now I would like to leave the remembering part for the next post. For now, let's talk about fun. Can writing be fun? Yes. But what kind of fun is that? To answer this question, there are basically two approaches, both of which lead to the same conclusion. I will start with the easy approach: the supply side of the fun. Now, what are the things that are mostly considered fun? Entertainments. Movies. Music. Video games. Hanging out with friends. Partying. Sightseeing. Travelling. TikTok. Youtube. Netflix. These things can be placed into an imaginary spectrum, with one side being totally brainless, and the other side requiring some sort of effort. Let's take music for example. Listening to music can ...
Read more