Everything in this environment is bearish, especially at a Macro level. However, what I have begun to realize is that there’s an extraordinary amount of opportunity. Let’s briefly list everything the market is trying to digest:
40 year inflation
Unprecedented fiscal stimulus from both governments and central banks
Hiking rates into an economic slow down
QT, Rate Hikers and Taper within the same 12 month period
Needless to say there is a lot of risk.
After spending time developing a strategy, based on what I know with the Macro environment, I have come to realize that there’s a high probability we continue to head lower. It is relatively concerning to see that this has all makings of a secular bear market but, I know the game I am trying to play. I am trying to build wealth through accumulating business equity in the best businesses in the world. You can read more about my process here:
I have dedicated myself to sharing my research, thoughts, and strategies along my investing journey. Because of this, I am going to open my portfolio to all BluSuit Subscribers. The goal here is to scale to a $1m portfolio and it could take years and I plan on sharing this journey.
Today, we are going to start tracking my investment portfolio and I believe that now, in 2022, it is the perfect time to construct the best growth portfolio I possibly can. This is why I have said, probably a million times, “2022 year of accumulation”. Valuations are compressed and will remain so for the foreseeable future. I am taking this as an opportunity which leads me to focus on buying business equity in the best, profitable, growing business at discounted/compressed valuations.
This is what this process will look like:
Every week, I will provide an update of how I balanced my portfolio or bought/sold certain companies
I will continue to share my views and observed risks in the macro environment
I will share specific company research and updated thesis after earnings calls
Basically I will continue doing everything I am doing now but you will see the exact journey of my portfolio construction to $1m. Something is important to know about me too. I am just a regular guy, just like many of you. I have no formal education on the stock market, banking, or economics. I have a Bachelors in Business and that’s about it. That means anyone can do it.
Because I am providing transparency into everything I do, a few things need to be understood:
I am not responsible or advocating to buy or make any moves.
I am not a financial advisor, I am a regular guy
The primary purpose I am doing this is to show the power of buying and holding good businesses and advocating for the correct mindset
In fact, the whole reason why I wanted to do this in the first place was to show that with patience, a little work and the right mindset that we can all do this.
Reviewing Current Portfolio
First, I think it goes without saying that we are in a bear market. That means a lot of the stocks you buy during this time will likely go below your cost basis in the short term. This doesn’t bother me. I have been on the other side of things where you buy stocks and they go green right away, long term this hurts your returns. The goal here is to continue to accumulate with current cash flow and (while stocks are cheap) continue to accumulate business equity. I could care less about my returns today and I am focused on my 1,2,3 or 5 year returns. I believe any one of these stocks can double from here especially my top two positions.
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