His desired portfolio is this. He knows there's overlap in many of the major corps especially tech. Thoughts?
- QQQ 25%
- FMTM Momentum ETF 15%
- MELI MercadoLibre 9% Latin America’s leading e-commerce, digital-payments, advertising and logistics ecosystem.
- RXRX 7.5% Uses automation, biological data and AI to discover and develop new medicines.
- BRK.B 7.5%
- VOO 6%
- SOPH 5% Provides software that analyzes genomic and clinical data for hospitals and laboratories.
- KRE 5% Rregional real-estate markets ETF
- MU 5%
- NU 5% Rapidly growing digital banking and financial-services platform across Latin America.
- AMZN 2.5%
- GOOGL 2.5%
- TRV 2.5% Insurer
- MP Minerals 2.5%
Posted by CivilizedSteve
5 Comments
Looks like a well thought through setup to be honest. If he is comfortable with those local companies, then why not.
OMG ….. That’s a recipe for disaster. He should just do 70% VOO / 10-15% VXUS / 15-20% QQQM or SCHG or VGT whichever he prefers of those 3
Probably worse than 100% VOO
Waste of time but fun ig. IMO being young is the time to be risky – he should put all his money in a penny stock or something and see it explide
* **QQQ 25%**
I’d wait for a discount on this especially if it’s in a tax advantaged account. This isn’t an index you want to buy when it’s expensive if you’re not actively monitoring your account and willing to de-risk. Nasdaq has dropped 60% three times in just the past 30 years. Nasdaq has also spent 21 years of those past 30 years with a net 0% inflation adjusted return. (2000-2021)
* **FMTM Momentum ETF 15%**
This can become dead money in a bad market regime
* **MELI MercadoLibre 9%** Latin America’s leading e-commerce, digital-payments, advertising and logistics ecosystem.
9% is way too big a position for a single stock with foreign currency risk. It also has to actually execute its expansion to grow into its valuation, which is anothe risk. It doesn’t matter how well a company is doing or how big its potential is; what matters is stock price performance relative to your entry point.
* **RXRX 7.5%** Uses automation, biological data and AI to discover and develop new medicines.
Way too speculative and risky for this position size.
* **BRK.B 7.5%**
Dead money, period.
* **VOO 6%**
Way too small position size for a core index fund
* **SOPH 5%** Provides software that analyzes genomic and clinical data for hospitals and laboratories.
Way too speculative and risky for this position size.
* **KRE 5%** Rregional real-estate markets ETF
The entire world is having an interest rate problem and everything real-estate related is interest rate sensitive. Buying these only works if you time the market, I would pass
* **MU 5%**
Cyclical industry companies are ones to trade, not invest long-term in
* **NU 5%** Rapidly growing digital banking and financial-services platform across Latin America.
Way too speculative and risky for this position size.
* **AMZN 2.5%**
Use this to buy VOO instead, Mag7 are not immortal.
* **GOOGL 2.5%**
Use this to buy VOO instead, Mag7 are not immortal.
* **TRV 2.5% Insurer**
Appropriate position size for this kind of holding but I wouldn’t expect too much performance from this.
* **MP Minerals 2.5%**
Appropriate position size for this kind of holding but I wouldn’t expect too much performance from this.
Don’t get me wrong, I don’t worship the S&P 500, but this is not a well thought out portfolio