10.11.2022 Portfolio Update (Monthly Edition)
10.11.2022 Portfolio Update (Monthly Edition)
Topics: Quote, Portfolio Update, Portfolio Discussion, Comments From Me, Raising Investing Bar, and (of course) More Books.
Quote for this month:
“The more you know, the more you learn; the more you learn, the more you can do; the more you can do, the more the opportunity - it is very much like compound interest.” -
Dr. Richard W. Hamming
Before we begin I would like to share with all of you my entry into Commonstock’s September Idea Competition:
Although I did not win, post above gives some idea of the way I think about Spotify as investment.
Portfolio Update*
*I am NOT a financial advisor, I’m sharing my investing journey. Do your own research.*
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Portfolio:
Portfolio Discussion
No crazy changes except there are some changes…
As previously stated, I have been selling out of WWE and adding to likes of IAC, SPOT, EVVTY, and OZKAP.
By the way WWE is holding up vs what I’m currently buying it seems as I’m “watering the weeds, and cutting flowers”
The idea behind starting/adding to OZKAP is in a way of adding to my OZK position without actually adding to it for dividends. Currently OZKAP is yielding around 6%-7% which is actually more then what I’m currently getting on my OZK which is around 5%-ish.
Dividends for September:
If we are to stay in this type of environment for some time, I think having some dividend paying stocks is not a bad idea.
I did think about buying I Bonds and 9% is nice yield I think in the long run I can probably do better without moving money around to treasury and then back to trading account, caveat is if next I Bonds goes closer to 15% I will definitely start allocating to I Bonds.
Comments From Me
What a month September it was and it seems as October (and probably a many to come) to be similar to “bloody” September. If you look at “Cumulative P&L” this is the second time EVER that it dipped went into negative territory, previous time was March of 2020. I have a feeling this time recovery wont be as quick as in 2020.
If you check any social media or news, the world is ending… too much negativity so I don’t listen / watch, my family tells me I’m too optimistic and naive to not look at the news and keep up with whats going on.
My question to y’all, am I thought? Or am I just trying to do my best to not psych myself out of investing long term, because if you are not optimistic during bad times how can you even expect that there is sunshine at the end of the rainbow?
I’m not dumb or naive in that I understand world is in uncomfortable state right now, but if the end as we know it to come, well none of this will really matter, no?
I understand world is dark place right now, but I choose to hope and see the better days, even if its really really hard to do sometimes right now…
I have about $10K to $15K ready to be deposited (trying to secure more funding but with family its not that easy) but I will be waiting for larger move down, so I don’t get triggered to deploy it too soon.
On a completely different note, this is starting to feel to me as I originally started investing in 2018-2019, so I’m actually in my comfort zone (if you can call it that) as in things don’t always go back up after going down…
Raising Investing Bar
For better or worse I came to conclusion that moving forward (with knowledge I have), I must raise the bar for companies that will be entering into my portfolio… not to say that I have a lot of garbage but I do think that couple of them I love less then others (and previously was too quick to pull the trigger)…which is not a good thing but it is what it is.
I also realized that you cant raise the bar if you don’t have a starting point that you can reflect from. Now I don’t know if I will succeed in it (time will tell) but I did reflect and I do think that I can (now) raise the bar.
With markets up and down swings, on emotional level I realized that some companies I just should not really own, not because I don’t think I cant make money on them (although there is at least one that’s borderline right now) but because after doing more research and thinking I realized that its not my type-of-a-style company to own or maybe at the time I just borough someone else’s conviction…
More Books
This time around I finished five audiobook and two that I did not finish:
The Spotify Play: How CEO and Founder Daniel Ek Beat Apple, Google, and Amazon in the Race for Audio Dominance by Sven Carlsson and Jonas Leijonhufvud
As Spotify shareholder, I thought to myself that I must listen to this audio book to get better idea about Spotify’s past / beginning and I will say I was not disappointed! I think this is a must read/listen to anyone who is interested in understanding how Spotify began and how Daniel Ek came to be and how I think he has not changed much since the beginning of Spotify’s journey.
The Spotify Play also gave me a good understanding of how Spotify negotiates with labels and also gives me more respect towards this what I think underappreciated company (when it comes to music/audio format)
I give it 4.5 out of 5 stars.
The Warren Buffett Portfolio: Mastering the Power of the Focus Investment Strategy by Robert G. Hagstrom
This is an old book and I had a chance to listen to it for free so I took the opportunity. Although there isn’t much new I took away, the basics are still good to go over time to time to keep yourself on the right path.
I give it 3 out of 5 stars.
Simple But Not Easy, 2nd edition: A practitioner's guide to the art of investing (Expanded second edition of the investing cult classic) by Richard Oldfield
Simple but not easy is some what similar to the book above except its a bit more applicable to current times but with a UK twist (or flavor). If you already read first edition then this one is not really of use to you, if you never read this book and want to save some money I would say you can just read the first edition and call it a day.
The biggest take away for me was how different UK fund managers look through the investing lens compare to USA, not really a bad way but maybe I’m a bit biased to say that so far there are more US based fund managers that I have learned from that just “speak” more to me.
I would still recommend it to all US based investors to get different take on what we all do as “value investors”
I give it 4 out of 5 stars.
The Meaning of it All: Thoughts of a Citizen-Scientist by Richard P. Feynman
Confession time, I tried to return this audiobook to Audible but they did not allow me (saying that I read too much of it to return, even though I don’t think so) so I decided to finish it just to see if I would get anything useful from it.
Since I’m not from academia a lot of it to me was just Mr Feyman talking about things he likes ( which I understand what this book is ) but to me I thought it would be something of … more of use… o well.
Biggest takeaway… As Mr Freyman puts it, no one knows anything about everything and that even smart people can be dumb and over confident in their abilities which is nice to hear/know because too many times “smart” or people with “credibility” will sound like they are talking out of their rear-end and yet a lot of us would take it all in without questioning it, wrong.
If you are a fan of Richard Feyman, I would think you would enjoy this… if you are not academic or just looking for something easy to digest and “useful”, I would say you can skip this one.
I give it 2.5 out of 5 stars.
Only the Best Will Do: The compelling case for investing in quality growth businesses by Peter Seilern
It seems that subconsciously the theme for this month was “successful UK investors and what we can learn from them”... jokes aside. Only The Best Will Do was an interesting listen because it goes up to 2019, and we knowing what has happening in 2020/21 its fun to listen to how different the future has played out, and so this book would be useful for “growth investors” as an overall-thought-process-idea-guide but nothing really specific, again from UK investors view.
I’m not sold on idea of buying only growth companies or as the author calls them quality growth but his checklist or “golden rules” are crossing paths with my checklist and its nice to know that my line of thinking is (hopefully) moving in the right direction.
I give it 3.5 out of 5 stars.
Investing for Growth: How to make money by only buying the best companies in the world – An anthology of investment writing, 2010–20 by Terry Smith
This is a book that I have previously purchase but then realized that all it is just Terry Smith’s letters and articles from FT and returned it… kind of disappointing because if you want you can get all of it for free via internet, but if you want a nice copy on your shelf or if you are a fan of Terry Smith it would be a nice purchase.
You can also listen to the podcast below to get a good understanding what this book and what Terry Smith is about…
Noise: A Flaw in Human Judgment by Daniel Kahneman
I stared to listen to Noise but after getting into the book I realized that its not really practical for “regular people” for “day to day” unlike Thinking Fast and Slow… this book will probably (probably because I didn’t finish it) be good for organizations and places for large chuck of information, for everyone else if you haven’t read yet I would suggest starting with Thinking, Fast and Slow.
Thank you for reading all the way to the end…
I would love to hear your feedback (both positive & negative feedback is welcomed).
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Thank you.
Sincerely,
Yegor @ From100kto1M
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VMD 1.19%↑ LKQ 1.11%↑ SPOT -0.72%↓ SFM -3.22%↓ PYPL 3.01%↑ GOOG 1.06%↑ GOOGL 1.13%↑ IAC 1.19%↑ OZK 1.84%↑ WWE 0.41%↑ CVS 0.43%↑ FF -1.77%↓ WBD 1.33%↑ MITK 7.54%↑ OPFI -1.63%↓ OMAB 0.75%↑ EVO -0.33%↓OZKAP 0.00
Well written and great commentary in the "Raising the Bar" section. Unfortunately, 2022 has given us a lot to learn not only about raising the bar for our companies but assessing our own bar as investors.
Looking forward to reading along.