🦧 the "boring" portfolio
📈 one heck of a boring allocation
the market’s been brutal, but we can still beat the market!
using portfolio visualizer’s backtester, i was able to backtest a portfolio allocation and compare it with the s&p 500 from 2007 to today, accounting for the ‘08 housing crisis and the current market downturn
this is a target allocation that i’ve set for myself around 2018, and so far it’s paid off well
i’ve made a separate account just to do this, just so i stick with my rules and don’t do other things to that account, such as day trading, swing trading, options, etc.
just pure buying and holding
here’s the not-so-ground-breaking allocation
50%: SPLG 0.00
basically the s&p500 index, but i like this etf better than SPY 0.00, because its per share price is much lower
that may not seem as relevant today because of fractional shares, but i found splg to be much more convenient when im having to do sell covered call, and i imagine it's much easier for most people to own 100 shares of splg rather than 100 shares of spy (you need 100 shares to sell one covered call)
16%: KO 0.00
y’all already know – my favorite ticker
it’s a solid business, and that’s an understatement, and well, here’s what i wrote on it three months ago, still holds true and probably will for a long time!
13%: WM 0.00
it’s not the next iphone or netflix, it’s just trash services
and yet, the financials and solid track record say it all – bill & melinda gates foundation trust is known to have 4.5% stake in the company
7%: MCD 0.00
kinda similar thought i had with coca-cola, but less weight
7%: DUK 0.00
my logic with this ticker (and XLU 0.00 for that matter) is – who doesn't pay their utilities in the direst of times?
by that i mean, as a whole, as a population or economy, utilities is one of the last sectors to crumble, and it is a defense play
5%: O 0.00
the "monthly dividend company" – currently sitting at a 4.81% annual dividend rate
one of my favorite reit’s
2%: BAC 0.00
im not a huge fan of owning bank stocks that much, and if anything, i’d rather recommend XLF 0.00 (the financial sector etf) instead
in any case, i found bank of america to be a solid stock within the financial sector at the time of the portfolio construction, one that’s not leading in growth but also not trailing relative to its industry peers
the lesson (i learned so far)
if you can’t pick the “right stocks”, it’s totally fine – you can still beat the market
the key is to find solid names and stick with the plan, even when it gets tempting to reallocate constantly – and this is where backtesters come in handy
this is no substitute for professional financial advisor services by the way – just something i found to be working, and one of multiple accounts/strategies i do anyways!