February 2020 Portfolio Update – Invest, diversify and FOMO

So February has been a great month so far regarding my portfolio. From now on I will be tracking only my investments on stocks, microloans and cryptocurrency, as these are the only ones I can track accurately. They represent 2/3 of my total investments and I will continue investing in them exclusively. Stocks will be the primary, microloans the secondary and cryptocurrency investing will be halted as it still represents a great percentage of my invested capital.

So back to my portfolios’ progress, to date by taking account of the aforementioned asset classes my portfolio has increased by 7%, yes I know not a great return for 2 years of investing starting from 1/1/2018, my first ever crypto purchase. But cryptocurrencies are extremely volatile and to date the value has decreased by 10% on my portfolio. This is the main reason why I cannot consider them a safe asset and will limit them in the future to max 10% of my invested portfolio (currently 40% of my invested amount).

Here you can see my total invested portfolio, in the following months I try to divert all capital from other platforms to stocks and Mintos.

And on here are my investments in assets that I will be tracking from now on.

And here is the percentages based on their current value.

As you can see the stocks have outperformed my crypto assets. According to Yahoo Finance my stock portfolio has increased by 21.5% since September. So what went wrong during these 2 years?

The answer to that is probably FOMO (Fear of missing out) I started investing in crypto rather late to the party when the price of Bitcoin(BTC) was about 12.800€ and Ethereum(ETH) about 750€ and this was after the top of 20.000$ for Bitcoin in the end of 2017, as the cryptos continue to fall I continued investing and cost averaging in order to reduce the Break-Even price, it worked for Bitcoin but not yet for Ethereum(ETH) and Litecoin(LTC). My last investment in crypto was in early September of 2019, one whole year after the previous. In late September of 2019 I started the journey of stock investing and here we are now.

Coming back to FOMO in the previous weeks I felt its presence again but on the other side of it. I have invested in Tesla(TSLA) in October 2019 with a price of 316$, with a rather modest position as I was starting out on this endeavor. At the time of writing Tesla has a price of 800$ a whooping 150% gain on my investment. One day before Tesla(TSLA) hit its all time high of 968$ on 04/02/2020 two of my best friends that just started with theirs first stock investments in the one week before opened a position in Tesla with a price of 721$ and 748$ accordingly. The next day they were extremely happy that they made 10% in a single day so they decided to buy again with a price of 856$ and 889$, after that Tesla (TSLA) skyrocketed to 968$ until long investors started profit taking to lower their risk, and short investors bought to minimize their losses. My friends ended with mean prices of 775$ and 844$, having a 3% gain and -5% respectively at time of writing. What they experienced the 2nd day of course was FOMO that’s why they increased their position and I cannot blame them as I know the feeling from when I first got into crypto, I even got tempted to increase my position also. Just for the history one of them got earlier than me on crypto, before the peak – summer of 2017, and so the roles were reversed now. One positive aspect is that before buying into Tesla they already had acquired one round of other companies so their portfolio balance is not only swinged by it, although they have a lot larger positive or negative swings depending if Tesla is rising or falling.

One aspect I personally want to explore is how well my portfolio performs against the indexes S&P 500, Dow 30 and Nasdaq. So I am currently researching on how this can be done.