I borrowed $5.7M to invest. Should I borrow more?

Last post, I had a $2.1M account with $1M in gains.

In 6 months, the account grew another +$470K so I'm at +$1.5M of total gains since my first post 5 and a half years ago. I did withdraw $250K to buy a new home, so the account sits at $2.3M.

Ending – Net Deposits = +$1.5M in gains

That's a +27% compound return a year for nearly 6 years. I continue to crush regular, r/stock boomer index fund portfolios:

I (blue) am +263% while stocks (green) are barely +100% over that time period

The account has $7.3M assets and $5M borrowed in options so that's 3.2x leverage. I'm under-leveraged, I know. The prudent and correct thing is to borrow another $2M and get back to the optimal 4x leverage. I haven't decided.

Summary:

– Borrow 2-4x the value of your account on margin.

– Dump it all in a multi-asset, diversified portfolio. For the stock sleeve, I prefer smart-beta funds due to their higher expected returns. The goal is maximum compound returns.

Positions: Stocks, bonds, mutual funds and $5M borrowed in Box Spread Options

Q&A

1) When will you de-lever/pay-off the debt/liquidate?

– Never. This maximizes returns. Why do anything but this?

2) What's it like for your account to grow +$1M per year?

– It's cool, you should try it. Save what you can, invest it like this and give it time. I started with just $20K in 2017.

3) Are you a billionaire with a bunch of assets elsewhere?

– I have every penny riding in here. Any other place it could be in will earn me less than 27% per year so why do that?