What’s in Our Portfolio?

 

 

By FAR, the question I am asked the most is “what are you investing in?”

 

To be honest, I HATE answering this question.

 

Why? Because I am not a financial planner and I would hate for someone to try and replicate our portfolio and end up losing money down the road.

 

I’ll be honest, our portfolio isn’t exciting…at all.

 

Along with our boring portfolio, our strategy is just as boring. We don’t chase the hot stock, some new up and comer, or jump on a stock tip we heard from a friend of a friend. I’m not telling you not to do that, it’s just not a part of our strategy.

 

What we do is simple. We invest money every month, to the exact same funds.

 

Month after month. Quarter after quarter. Year after year. That’s it.

 

So what are we investing in? Let’s take a look.

 

Our portfolio is spread between 5 accounts (2 personal investment, 2 401K’s and 1 Roth IRA) and is made up only 7 different investments…..total.

 

The two lone stocks we invest in are Apple and AAOI (Applied Optoelectronics). We were fortunate enough to buy into Apple when it was still in the mid-$90 range, as of today it is trading at just over $156.

 

We were able to buy really heavy into Apple because of the moves we made with Facebook a few years back.

The other individual stock we own is AAOI, YTD we have lost a bit of ground but we aren’t huge share owners of this stock, so the impact has been minimal.

 

And well folks, that concludes the stock portion of our portfolio. Told you it was boring!

 

Now on to the good stuff, funds! If you have talked to me in person you know I absolutely LOVE Mutual Funds and ETFs!

 

Why? Because they tend to be more stable than individual stocks and you don't have to deal with the wild swings one way or the other that you often have to with stocks.

 

The 5 funds in our portfolio are PRGTX, TRBCX, FCNTX, HLMEX, and a Russell Small/Mid Cap index.

 

These funds range from Technology funds to Blue Chip/Large Growth Funds & Emerging Market funds.

 

Between these funds, they have holdings in companies like Facebook, Google, Amazon, Tesla, Berkshire Hathaway, and others that many of you are familiar with.

 

They also have holdings in a lot of companies that you may not have heard of, and that’s ok too.

 

What I like most about all of these funds are two things: A) They have high turnover, meaning the fund is very actively managed and they are constantly buying and selling off individual stocks in the fund to generate a high rate of return.

 

B) They have a few years of positive historical returns. We generally like a fund with 5+ year of historical data. This gives us confidence to let us know that the managers who oversee these particular funds know what they are doing.

 

And well, that’s it! If you have any questions, feel free to ask in the comment section.

 

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