Back in June 2021, I asked myself the question "why not dollar-cost average monthly into triple-levered index funds for the next several decades?" - a question so good that I didn't want to know the actual answer - and began a commitment to ongoing purchases of TQQQ, UPRO, and URTY for the foreseeable future.
Nearly a year later, those "risky" investments have not blown up (yay!) and I began to look for additional leveraged investments outside of the indices. This plan calls for all of the following:
- Monthly dollar cost averaging, a strategy that has served me well for my first two decades of investing, DCA is an absolute necessity when dealing with...
- Investment vehicles subject to significant daily/monthly volatility, which double- and triple-leveraged ETFs certainly qualify for, hence the advertised "risk". To be clear: the short-term downside potential is a feature, not a bug, when coupling the magic powers of DCA with...
- Massive multi-decade outperformance potential (duh).
So I put on my Warren Buffett/Rip Van Winkle hat and found two instruments of choice: SynBio via LABU, and China via CWEB (an investment of which Charlie Munger might approve).
As one last step before diving into the pool that I had dipped my toes in, I asked myself the follow-up question: "is this really going to work? really?" The short answer is yes; the long answer is here, which itself contains links to math and other details that underline the premise that I intuitively knew to be correct immediately upon asking the original question.
Boilerplate time...
As a stretch goal: for dividend income purposes, I'd like this portfolio to eventually be as much as a 50/50 25/75 split between stocks and yield. As seen below, it is currently 41/59.
I am in no rush to flip into yield. I would rather let my winners run forever. However, if in any given month I see no stocks that present themselves as especially good buying opportunities, I have no reservations in simply adding to my bond, preferred stock, leveraged ETFs and/or covered call ETF/Ns. It is truly a month-to-month situation (as it has always been!).
For the foreseeable future, I want to track my
Big Five Two every month, whether I buy them or not.
Amazon (AMZN)
- $1.62T market cap
- no dividend
- $469.8B revenue
- 9% revenue growth
- $96.1B cash
- $139.4B debt
- $46.3B operating cash flow
- $-0.8B free cash flow
Microsoft (MSFT)
- $2.26T market cap
- 0.8% dividend yield
- $184.9B revenue
- 20% revenue growth
- $125.4B cash
- $80.4B debt
- $83.9B operating cash flow
- $46.5B free cash flow
Here's my current portfolio (
buy, hold, and sell). As always, I believe in all of these stocks/ETF/ETNs - until I sell them.
Microsoft (MSFT) 15.54%Amazon (AMZN) 12.01%
iShares Broad USD High Yield Corporate Bond ETF (USHY) 11.02%
Global X U.S. Preferred ETF (PFFD) 10.62%
Xtrackers USD High Yield Corporate Bond ETF (HYLB) 10.19%
Invesco NASDAQ 100 ETF (QQQM) 6.86%
Global X NASDAQ 100 Covered Call ETF (QYLD) 6.19%
Credit Suisse X-Links Crude Oil Shares Covered Call ETNs (USOI) 5.65%
Credit Suisse X-Links Silver Shares Covered Call ETN (SLVO) 5.42%
Global X Russell 2000 Covered Call ETF (RYLD) 4.62%
Global X S&P 500 Covered Call ETF (XYLD) 3.01%
Credit Suisse X-Links Gold Shares Covered Call ETN (GLDI) 2.54%
Invesco NASDAQ Next Gen 100 ETF (QQQJ) 2.51%
Costco Wholesale (COST) 1.84%
UnitedHealth Group (UNH) 1.74%
ProShares UltraPro QQQ (TQQQ) 0.11%
ProShares UltraPro S&P 500 (UPRO) 0.05%
ProShares UltraPro Russell 2000 (URTY) 0.03%
Direxion Daily S&P Biotech Bull 3X Shares (LABU) 0.02%
Direxion Daily CSI China Internet Bull 2X Shares (CWEB) 0.02%
