Nothing
- Stryker
- Feb 15, 2021
- 1 min read
After dumping $60 of my $109 to gamble on AAPL, I did not come close to reaching my goal.
Learnings
A diversified portfolio is less likely to provide large upside return because it is just that: a diversified portfolio. Even with a focus on highly volatile securities (not to mention the period over which the scenario was held), the portfolio only outperformed the S&P by 6%. This actually isn't too shabby - really nothing to complain about, but nothing near the 100% I had hoped for.
If I truly wanted to 2x my money, I would have realistically had to sacrifice the low risk of the diversified portfolio to essentially "gamble" on a few stocks. Granted, I could have easily made a ridiculous return had I gotten on the GME bandwagon and followed Michael J Burry, the mad financier who called the '08 financial crisis... you may know him as Christian Bale from The Big Short.
When I do this again (which I will), I believe I will come at it from a much more behavioral approach, attempting to track emotional & irrational market trends from buyers and sellers.
One positive takeaway is that I did not lose all my money. This is good. :)