3 min read

This week, I would like to share with you my story of how I got into investing and what my investment strategy looks like.

I began investing with my personal funds about 15 years ago while in college, trying to apply academic knowledge to real-market situations. While understanding the academic and technical aspects of financial markets doesn’t guarantee trading success, it’s invaluable for grasping how actions taken by politicians or central bankers can affect markets and your portfolio. This knowledge allows you to anticipate and take precautionary actions beforehand to protect your investments. Of course, human emotions, partly or entirely, drive us, and markets are also influenced by this sentiment, leading to a whole finance area focused on behavioral finance. I won’t go deeply into that now, as this post is not about it, but I’ll focus on it in a later one.

During college, I learned not only from classes but also from my dad, a businessman and day trader. Observing an experienced trader in action gave me insight into decision-making, emotional control, and knowing when to stop, whether in profit or loss. Initially, I focused on short-term gains, not yet considering long-term investments. Pursuing a master’s degree in finance and investment deepened my knowledge and exposed me to the challenges of sustaining short-term trading profits, as evidenced by academic papers. The more I read about it, the more convinced I became about focusing on long-term strategies.

After completing my studies, I joined a private bank’s treasury department, gaining firsthand experience in professional proprietary trading. Despite enjoying the daily rush, I realized it wasn’t a long-term career path for me. Therefore, I decided to change my career and focus on earning money elsewhere to invest in the long term with the knowledge I had gathered. Thus, my long-term investment journey truly began after 2017, with prior experiences laying the groundwork.

Currently, my investment strategy emphasizes long-term focus and a diversified portfolio, with regular monthly investments. While I typically purchase the same instruments monthly, I also seek other opportunities. However, I allocate only a small portion of my budget here, aiming to grow with the market rather than consistently beat it, a challenging feat proven by academic papers. I will share overviews of some of these papers in the coming weeks. Additionally, I’m not focusing on the popular FIRE method, which entails frugal living and retiring at a younger age. My aim is to attain reasonable wealth to maintain my living standards and continue working in a job I enjoy without the pressure of retirement and financial concerns.

As of writing, the majority of my portfolio comprises well-diversified ETFs (~60%), spanning global geographies and industries. Precious metals make up ~20% of my assets, with various stocks comprising ~10%. The remaining ~5% is allocated to ‘Fantastic Beasts,’ high-risk assets like crypto assets and crowdinvesting, though I remain skeptical about crypto. I also do options trading for a small percentage of my assets, mainly for enjoyment and not as part of my long-term strategy.

In next week’s post, I will provide a detailed overview of my positions so you can see the funds/stocks I’m investing in and gain a starting idea. I will also offer honest comments on each position, whether they resulted in profit or loss, and share my learnings. While I wish all my actions were profitable and I had a crystal ball, reality dictates otherwise. We must learn from both successes and mistakes and adapt to changing situations to remain in the game for decades.