90% of this blog content so far has been reviews of suspicious P2P platforms and making fun of bloggers, who promote P2P scams and end up losing money themselves. So I am starting a new experiment that will allow others to laugh at my investment decisions as well.
Thanks. P2P is risky stuff - if you select only the best platforms and are OK that even those are not regulated, can change rules any time, etc. - it can be a part of broader portfolio, but would not place 100% of funds in P2P like many do.
Hi, Kristaps! Very interesting read, thanks for the article. Wishing you good luck with achieving your aim, it is quite a tough one. Please keep on going - it inspires others as well :)
I really don't understand why you invest 40% of your portfolio in bitcoin (?!). Even if you believe in the future of this cryptocurrency (I don't, mainly used by deep web for untraceable transcations), the percentage is way too high. I would invest 5% maximum.
The position size reflects my trust in it. For most people it should not be more than 2-10%, but as I have experience with Bitcoin for quite some time, I have a stronger conviction. And it seems to be working well so far - right now my BTC position is +10.85%, comparing with SP500 +8.22%, and Buffett's $BRK.B: +8.84%
In each montly update I compare performance split by categories as well - gold, btc, ETFs, small companies, big companies.. So if you think it is not fair, you can only look at those categories with stocks inside. For me it is important to a) check if such thing as "all-weather" portfolio is possible and how would my portfolio perform during a stock market crash. For example, some investor like bonds, Buffett might increase his cash position and look for cheap assets, I prefer to avoid cash&bonds and instead have 50% of portfolio in btc, gold. b) is it possible to have not only smaller downside in a market crash, but also - bigger upside overall, so that is why I am comparing my portfolio to S&P500 and BRK.B
Hi! Have you considered using Degiro over Interactive Brokers? I am currently in the middle of deciding which one to choose, and I would like to hear your opinion.
If you just buy parts of several benchmarks you may outperform one, but on average you will always underperform compared to most of them. Especially if you pick opposites, such as gold and stocks. One goes up, the other goes down, and the net result will be around the inflation mark.
Hi, Kristaps, and thank you for publicly taking these risks. I'm just wondering if you could compare some index funds in your future posts? Is $VOO available to buy in Europe? I don't think it's on Degiro.
Kristap, it would be nice to hear bit more rationale behind these picks. What were other options which you considered but chose not to go ahead? Why did you opt exactly for $VOO in your portfolio - there are also other alternatives for S&P500 tracking. Why exactly S&P500 as a benchmark, have you considered other markets as well, say emerging markets or MSCI World index? What about bond funds? Local banks in Latvia offer various investment funds - would you advice to consider them as well? Sorry so many questions from my side :)
Very good idea! Do you think p2p at the moment is definitely a no go? Better take the money elsewhere?
Thanks. P2P is risky stuff - if you select only the best platforms and are OK that even those are not regulated, can change rules any time, etc. - it can be a part of broader portfolio, but would not place 100% of funds in P2P like many do.
Hi, Kristaps! Very interesting read, thanks for the article. Wishing you good luck with achieving your aim, it is quite a tough one. Please keep on going - it inspires others as well :)
Thank you!
You need to explain your rationale behind those picks a bit, otherwise there is little learning/comparison of views opportunity for readers.
Thank you for feedback, makes sense. Will do it in next posts.
I really don't understand why you invest 40% of your portfolio in bitcoin (?!). Even if you believe in the future of this cryptocurrency (I don't, mainly used by deep web for untraceable transcations), the percentage is way too high. I would invest 5% maximum.
The position size reflects my trust in it. For most people it should not be more than 2-10%, but as I have experience with Bitcoin for quite some time, I have a stronger conviction. And it seems to be working well so far - right now my BTC position is +10.85%, comparing with SP500 +8.22%, and Buffett's $BRK.B: +8.84%
Buffett doesn't invest in BTC, you should invest in the same asset classes in order to make a fair comparison
In each montly update I compare performance split by categories as well - gold, btc, ETFs, small companies, big companies.. So if you think it is not fair, you can only look at those categories with stocks inside. For me it is important to a) check if such thing as "all-weather" portfolio is possible and how would my portfolio perform during a stock market crash. For example, some investor like bonds, Buffett might increase his cash position and look for cheap assets, I prefer to avoid cash&bonds and instead have 50% of portfolio in btc, gold. b) is it possible to have not only smaller downside in a market crash, but also - bigger upside overall, so that is why I am comparing my portfolio to S&P500 and BRK.B
Hi! Have you considered using Degiro over Interactive Brokers? I am currently in the middle of deciding which one to choose, and I would like to hear your opinion.
If you just buy parts of several benchmarks you may outperform one, but on average you will always underperform compared to most of them. Especially if you pick opposites, such as gold and stocks. One goes up, the other goes down, and the net result will be around the inflation mark.
Dude, why are you doing this to yourself.. Avoid the trap.
Hi, Kristaps, and thank you for publicly taking these risks. I'm just wondering if you could compare some index funds in your future posts? Is $VOO available to buy in Europe? I don't think it's on Degiro.
Carnival, that's interesting, a bet on recovery of tourism, with many countries releasing the restrictions this could be a very good idea.
Kristap, it would be nice to hear bit more rationale behind these picks. What were other options which you considered but chose not to go ahead? Why did you opt exactly for $VOO in your portfolio - there are also other alternatives for S&P500 tracking. Why exactly S&P500 as a benchmark, have you considered other markets as well, say emerging markets or MSCI World index? What about bond funds? Local banks in Latvia offer various investment funds - would you advice to consider them as well? Sorry so many questions from my side :)