Lessons learned in building multi million dollar portfolio part time…
The good news is you can do it too. It’s not complex. Let me break the sad news as well, Rome was not build in a day. So no way to get the return on reading single blog. Please continue to watch my blog and you can learn as we go along in our journey together.
DISCLAIMER: I am not a financial advisor. I have no qualification or education to recommend you for stocks and bonds and it’s derivatives trading. The information in the series is for educational purpose only. Please use your judgment for suitability on your situation.
Once upon a time when I had no knowledge on stock market, my savings are pretty much bank accounts. By that time my expenses are 80% of my earnings even at 35K salary. So I am accumulating income and got fat return close to 5% from bank. Glad I switched to stocks (now bank account return is 0.01%). Then I got exposed to 401k for the first time. As usual skeptical as newbie lookup on advice. As every one advised I started saving just enough for the company match. Now it looks a foolish idea. 20 yrs later 70% of my portfolio is tax free or tax advantaged account.
Next common advised given to me I have to invest 90% with stocks and 10% on bond and continue to adjust every 10 yrs. Eventually down to 60% stocks and 40% bond portfolio so you can do 4% draw down while keeping the portfolio intact.
So without much knowledge started saving the money in mutual funds some has frontend/backend fees and my returns are 2% to 5% year over year due to fees. That’s when I started looking into, can I get higher returns without spending too much time on it. I started reading books, WSJ, Barrons and learned quite a bit and enjoyed it on the way.
The process took me to move away from Mutual Funds, ETF and concentrate on set of stocks and options trading ( Not in a traditional way it was thought). Very happy with the consistent return I get for the past 3 years I am actively tracking.
So I am starting an organization to share my knowledge and assist as much people using the strategies I learned over 20 years. You can review the steps and do it yourself.
KEY TAKEAWAY
Read Random Walk on Wall St, Warren Buffett letters for fun when the portfolio is small. They are no use or slow growth to your situation. It will be helpful once you build multi million dollar portfolio.
Learning about the process is more important that what stocks/bonds/ETF you are trading.
Until we meet again. Happy learning and trading.
