2021 PORTFOLIO UPDATE (INC. 2020 REVIEW)



𝗛𝗔𝗣𝗣𝗬 𝗡𝗘𝗪 𝗬𝗘𝗔𝗥 𝗘𝗩𝗘𝗥𝗬𝗕𝗢𝗗𝗬!


Before I outline our 𝗚𝗢𝗔𝗟𝗦 and 𝗘𝗫𝗣𝗘𝗖𝗧𝗔𝗧𝗜𝗢𝗡𝗦 for 2021 I want to quickly highlight the performance of our investments in 2020!


𝟮𝟬𝟮𝟬 𝗥𝗘𝗩𝗜𝗘𝗪


The year started off with the entire market being 𝗥𝗢𝗖𝗞𝗘𝗗 by the coronavirus! In fact, the S&P500 suffered 2 of its largest 1 day declines in history on the 12th & 16th March (10% & 12%). As somebody who credits a lot of my investment outperformance to 𝗥𝗘𝗠𝗔𝗜𝗡𝗜𝗡𝗚 𝗖𝗔𝗟𝗠 during volatility - I was able to just about keep my composure, however I must admit that I struggled to keep my cool!


𝗔𝗦 𝗜𝗧 𝗛𝗔𝗣𝗣𝗘𝗡𝗘𝗗...


I was in Thailand during the market sell-off and I remember pacing around my hotel room debating with myself on what I should do.... 𝗦𝗪𝗜𝗧𝗖𝗛 to defensive stocks? 𝗦𝗘𝗟𝗟-𝗢𝗨𝗧 and sit on the sidelines? OR 𝗖𝗢𝗠𝗠𝗜𝗧 to riding the wave!


Given that I had been too late to sidestep the washout, I decided to research and 𝗟𝗢𝗔𝗗 𝗨𝗣 on stocks that I believed were oversold! This ensured that we were positioned well once the market kicked back into gear!


This was 100% the best move as stocks rebounded strongly from March and despite indexes such as the S&P500 finishing up 16% for the year, our investment portfolio grew over 𝟴𝟮%!


The 𝟱 𝗕𝗘𝗦𝗧 𝗣𝗘𝗥𝗙𝗢𝗥𝗠𝗘𝗥𝗦 in our stock portfolio this year were:


𝟭) 𝗘𝗱𝗶𝘁𝗮𝘀

𝟮) 𝗟𝗲𝗺𝗼𝗻𝗮𝗱𝗲

𝟯) 𝗕𝗶𝘁𝗰𝗼𝗶𝗻

𝟰) 𝗘𝘁𝗵𝗲𝗿𝗲𝘂𝗺

𝟱) 𝗡𝗧𝗟𝗔


These 5 stocks delivered us 𝗘𝗡𝗢𝗥𝗠𝗢𝗨𝗦 𝗚𝗔𝗜𝗡𝗦 and were the stand out performers however, our investments would not have achieved such high returns this year without our exposure to 𝗕𝗮𝗶𝗱𝘂, 𝗘𝗮𝘀𝘆𝗷𝗲𝘁, 𝗚𝗼𝗼𝗴𝗹𝗲, 𝗧𝗲𝗻𝗰𝗲𝗻𝘁 𝗠𝘂𝘀𝗶𝗰, 𝗕𝗮𝗹𝗹𝗮𝗿𝗱, 𝗔𝗗𝗔, 𝗦𝗼𝗹𝗮𝗿𝗘𝗱𝗴𝗲, 𝗔𝗰𝘁𝗶𝘃𝗶𝘀𝗶𝗼𝗻 & 𝗧𝗶𝗹𝗿𝗮𝘆.



𝗪𝗛𝗔𝗧 𝗜 𝗟𝗘𝗔𝗥𝗡𝗧...


In March, my portfolio was down for the year... With 99% of other investors. At times I was tempted to sell... stop the bleeding as the say! However, I've experienced sharp corrections & bear markets before and every time the best move has been to 𝗥𝗘𝗠𝗔𝗜𝗡 𝗖𝗔𝗟𝗠 𝗔𝗡𝗗 𝗦𝗧𝗔𝗬 𝗢𝗕𝗝𝗘𝗖𝗧𝗜𝗩𝗘.


When investors panic and markets begin to fall, entire industries sell-off and many stocks are wrongfully brought down with the market. This creates rare opportunities for investors that should not be passed up! Therefore, once we've analysed the reasons behind the sell-off - We need to 𝗕𝗘 𝗕𝗥𝗔𝗩𝗘, buy into weakness and sit tight!


If you wish to wait for confirmation that the market has bottomed - it will already be too late and you will have missed out on the easy gains available from the inevitable 𝗦𝗛𝗔𝗥𝗣 𝗥𝗘𝗕𝗢𝗨𝗡𝗗.


"𝐵𝑒 𝑓𝑒𝑎𝑟𝑓𝑢𝑙 𝑤ℎ𝑒𝑛 𝑜𝑡ℎ𝑒𝑟𝑠 𝑎𝑟𝑒 𝑔𝑟𝑒𝑒𝑑𝑦 𝑎𝑛𝑑 𝑔𝑟𝑒𝑒𝑑𝑦 𝑤ℎ𝑒𝑛 𝑜𝑡ℎ𝑒𝑟𝑠 𝑎𝑟𝑒 𝑓𝑒𝑎𝑟𝑓𝑢𝑙" 𝑾𝒂𝒓𝒓𝒆𝒏 𝑩𝒖𝒇𝒇𝒆𝒕𝒕


𝟮𝟬𝟮𝟭 𝗢𝗨𝗧𝗟𝗢𝗢𝗞


After another big year, I spent the month of December capturing gains and re-applying these profits to the positions that I believe will outperform this year. You can check out the recent changes to our portfolio below:


NEW POSITIONS


XRP - I sold my XRP at a huge profit back in November however the cryptocurrency was recently wrecked due to allegations by the SEC. I now believe that the upside potential for XRP once again outweighs the downside risk and represents a good calculated opportunity in 2021! You can check out the reasons why I believe in XRP by clicking HERE!


Alibaba - Another "buy the short-term weakness" trade. There is a lot of negative sentiment towards Alibaba right now due the failed IPO of Ant Financial & the recent scrutiny of big tech from Chinese Regulators. I have seen this before with JD.com back in 2018 when there were many allegations about the company and its management. I was able to double my investment in JD back then and I expect Alibaba to recover in 2021!


Check out my blog post 2 REASONS TO BUY ALIBABA STOCK


INCREASED POSITIONS



Tencent Music - The stock is up almost 50% since I posted an article 2 months ago outlining why Tencent Music was 1 of my top 5 stock picks - Check it out HERE!


Tilray - One of the few US based cannabis stocks available on the NASDAQ. Should benefit as states within the US begin to legalise marijuana.


Bitcoin - With 2 of my Bitcoin positions up 200%, I will need to close them in order to capture profits and reapply. This will allow us to benefit from the magic of compound interest. As my cash position is over 10%, I was able to set tight stop-losses on these trades rather than close them whilst opening their replacements. Therefore our position in Bitcoin is now greater than usual however, this has proven lucrative so far with Bitcoin rising 10% since I doubled up on the crypto!


Check out why I believe BITCOIN COULD HIT $1M.


GW - My favourite medicinal cannabis stock. Right now, GW gets almost 90% of their revenues from the US. However, they are slowly rolling out their operations across the UK, Germany, Italy, Spain & France. This will improve revenues and diversify their business.


REDUCED POSITIONS


Ethereum - Taken profits, with the plan of re-applying and compounding my investments in Ethereum.


CLOSED POSITIONS


Baidu - The stock increased 50% in December and I believe that the stock could well pullback soon representing a better entry point.


Activision - I believe the stock could lag this year after a terrific 12 months and as the economy reopens in 2021.


With the portfolio rebalanced, we will continue to benefit from the clear growth trends that have served us so well over the past couple of years. I am particularly 𝗢𝗣𝗧𝗜𝗠𝗜𝗦𝗧𝗜𝗖 about a couple of industries that we have exposure to and I'm very confident that we'll continue to grow our investments faster than almost every other method out there!


Well done to everybody who grew their savings this year 👏 𝗖𝗢𝗡𝗧𝗜𝗡𝗨𝗘 𝗧𝗢 𝗧𝗥𝗨𝗦𝗧 in our portfolio & trading strategy and we will reach our financial goals even faster over the next couple of years!


‘𝐿𝑒𝑎𝑟𝑛 𝑓𝑟𝑜𝑚 𝑦𝑒𝑠𝑡𝑒𝑟𝑑𝑎𝑦, 𝑙𝑖𝑣𝑒 𝑓𝑜𝑟 𝑡𝑜𝑑𝑎𝑦, ℎ𝑜𝑝𝑒 𝑓𝑜𝑟 𝑡𝑜𝑚𝑜𝑟𝑟𝑜𝑤.’ 𝑨𝒍𝒃𝒆𝒓𝒕 𝑬𝒊𝒏𝒔𝒕𝒆𝒊𝒏

 

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