David Loses Money Tracking my adventures in making money without earning it

CategoryInvesting

Performance for 1Q22

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I haven’t been doing much in the way of investing recently as my life is a hot mess (more in the next post), but I should catch up on all this.

The first quarter of 2022 was an absolute garbage fire in terms of my investments. They’re still falling apart now, but wow – going from being up a heap to cratering to the centre of the earth in the space of a few months has been psychologically difficult, to say the least. Part of the issue is it got so horrible that I just stopped looking because it was making me depressed – which possibly stopped me from selling when maybe it would have been a good idea. But oh well. Let’s delve further into it.

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Recent Trades [February 2022]

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So. Everything has been a hot mess recently. All my gains this FY have vanished, and at the time of writing I’m down about 7%. The value of all my cryto has halved. Things are very unpleasant.

But this isn’t the first time everything has gone to hell, and it won’t be the last. I still believe in all the companies I’ve bought into, and will likely invest more as money comes up. Markets are just all over the place though at the moment so I haven’t really felt confident buying (or selling) anything – the plan at the moment is to just sit on my hands until all this volatility shakes out and things feel more steady, then I’ll go discount shopping. I haven’t panic sold anything, although I really wish I had stop losses set on like… three quarters of my portfolio. Ah well, next time (I write this full-well knowing I’m an idiot who won’t set stop losses next time).

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Performance for 4Q21

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Wow, December was pretty horrible for me. I lost most of my gains for this FY and it was just a mess. It felt like every decision I made was the wrong one, no matter how much research I did or how long I spent thinking about it. Fingers crossed for a better quarter now.

Something I wanted to do in 2022 was…. well, get better at this. I’ve bought a bunch of books to study and we’ll see how we go.

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Recent Trades [December 2021]

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Ugh, I have so many half-written posts saved in my drafts. Really need to finish some. But in the meantime here’s what I’ve been up to lately: not much.

My shares and crypto portfolios have absolutely tanked over the past few weeks, leaving me with a bit of a mess and I’m unsure what to do. Markets seem to be operating in a way that whatever choice I make, it’s the wrong one, so I’ve held off from buying. Plus flying lessons – far out they are not cheap. Every time a lesson gets cancelled due to bad weather (of which there’s been a lot recently) I’m like YES! MONEY!

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Recent Trades [November 2021]

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I haven’t done much trading recently: NSW coming out of lockdown + taking up flying lessons + booking holidays has drained me of my spare cash, so it’s been mostly HODL each day. All my stuff has gone up a bunch over the past two weeks, but I feel like it’ll be hit with a crash by the end of the month. The whole Evergrande problem hasn’t been resolved – really wondering when that’ll come to a head.

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Performance for 3Q21

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Wow! This past week has been horrible for shares. It wiped out about the past 6 weeks of gains for me, and as for Hedgefundies… oof. Seems the big dramas affecting everything are:

  • Evergrande and the hot mess that will result in. It’s weird because everyone knows it’ll be a big drama when it inevitably falls apart, but there’s no real agreement on what that drama will actually be and what it will affect.
  • Attempting to taper off quantitative easing. Did you know something like 25% of all the money in America came into existence in the past year or so, as part of attempts to stop the economy from imploding due to COVID? There’s no way that won’t eventually have consequences.
  • US debt ceiling drama. It feels like once a year or so this is a thing and it always ends the same way, and everyone seems to forget and freak out? Yeah I’m sure the Republicans will let the US default, just like every other time they’ve threatened to and then backed down.

Did you know that historically, September is the worst month for the sharemarket? Let’s blame it all on that and be blindly optimistic for the future.

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Recent Trades [September 2021]

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I’m not sure how frequently I should do these posts. At the moment I’m going with my gut, just writing when I feel like I’ve done a few – but whatever a “few” is is some arbitrary number that depends on the alignment of the stars or whatever. But here’s what I’ve been up to recently. I’m due for a quarterly rebalance on Hedgefundies on Friday so I’ll do a separate post about that then. But anyway, here’s my activity since the last post about this 2 months ago…

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Overdiversification

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Warren Buffet once said “diversification is a protection against ignorance – it makes very little sense for those who know what they’re doing.” This is perfect for me, because I have no clue what I’m doing and have little interest in becoming an expert in whatever I’m buying into.

I’m assuming we all know about risk and everything. But I want to pad the word count on this a bit so:

  • Unsystematic risk: the risk you take when you punt on a stock – it’s lower when you’re buying well-established gigantic companies with huge market caps and way higher when buying speculative pennies, however your rewards are usually reflected in that.
  • Systematic risk: the risk of owning shares. You can’t do anything about this, you just have to accept that occasionally the entire market can and will shit its pants.

So you can’t do anything about systematic risk (other than be like hurr durr I’ll put my money in savings and lose it to inflation) but you can deal with unsystematic risk by diversifying your holdings. But at what point does diversifying become pointless?

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Barry

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It’s 4PM on the ASX and your stocks are up. You’re comfortably in the green, you’re beating the index, and life is good. 4:10PM comes around and suddenly your whole portfolio violently shits itself and half your gains for the day vanish. It’s like when you’re at trivia and the host decides to make the final question worth 50,000 points. What’s the deal?

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David Loses Money Tracking my adventures in making money without earning it

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