WealthWise Performance Report + Ratings Revision
Outperformed S&P 500 by ~50% since inception
Since I started this Substack on March 29th, 2023 my portfolio has delivered an average annualized return of 36.65% as of May 2nd, 2024. During the same time period $SPY has returned an average annualized return of 24.73%.
On a total return basis, the portfolio has earned $1,147 for a total invested ~$7300, which is approximately 16% return. Please take note that most of these investments have been invested for less than a year, which means that the 16% return was captured in less than a year pushing the annualized return to 36.65%.
You can find the details of positions held and how they have performed over the past 13 months here.
Commentary:
Most of the outperformance was driven by a handful of my positions, as is often the case. In the last 3.5 months, the main winners in my portfolio were Nvidia ($NVDA), Crypto ($BITX, $RIOT, $MARA), Copper ($COPX, $FCX), $HIMS, $SMH, $GOOG & $BOTZ.
The most exciting part for me though is that Renewable energy, Space and Real Estate along with Apple are still in the dumps. It excites me because it is yet to move, that move is still in our future. My portfolio’s performance will go through the roof once these sectors start performing. Let’s break it down in more detail.
As I have been saying, renewable energy is THE MOST Interest rate sensitive sector and will start doing well as and when interest rates get cut, whenever that might be. We don’t have a choice but to make this energy transition. About 45% of this portfolio is exposed to renewable energy names, so the surge is going to be incredible.
In Space, my big bets are $RKLB & $RDW. These are story stocks that will likely go up 10x at some point and dare I say, could also go up 100x with great execution. But for now, both need to grow faster and try to get to profitability as soon as possible. Rocket Lab in particular needs to do one of the following 4 things to start doing well: 1. Profitability on the horizon, 2. Positive Neutron update, 3. Interest rate cuts, 4. Space becomes a hot topic like EVs were in 2021 (given the Artemis moon missions are coming up, that could happen).
While Real Estate prices have not gone down (owing to lack of supply), Real Estate Equities have corrected and in some cases, have gained back more than half of what they lost. However, Real Estate equities have stagnated for the last few months, as there is increasing doubt on the timing of the rate cut. I intend to be patient and think there is 15-20% more to go within Real Estate Equities.
Apple’s June WWDC could be a make or break moment for Apple. Given Apple’s strong leadership and brand loyalty, I am speculating that Tim Cook and company will figure AI out and will eventually roll out new devices which will drive AI on the Edge leading to a iPhone Refresh Supercycle.
In conclusion, the portfolio is doing great and outperforming S&P 500 by approximately 50%. And for the sections that are not doing well, I could not be more bullish, making it the perfect setup. Just need to stay patient and wait for the market to come to me.
Here is an update on what I am doing with my positions:
For all the tickers that are down, my thesis has not changed for any of them and I am still bullish and adding to my current position. You can find my thesis here if you missed any.
[Buying]
[Holding]
$BTC
As always, I am not selling any of my core positions.
[Sold]
As shared in the two trading alerts I published, I started selling Nvidia to rebalance my position whenever my NVDA 0.00%↑ position grew larger than 5% of my net worth.
I also sold out of my RIOT 0.00%↑ & MARA 0.00%↑ positions completely and sold a third of my BITX 0.00%↑ position.
Past performance is no guarantee of future results.
The ideas discussed in this article should not be constituted as investment advice.
Disclosure: We own positions in some/all of the tickers mentioned in this article.
Articles published within the 30 days prior to publishing the performance analysis are not included in the analysis because of the outsized impact it has on the annualized return number.