May 10, 2020
This is the monthly update of my M1 Finance Wolf Pie portfolio. I started this portfolio from $0 in August 2019 to show you how to invest your first $1,000 (and beyond) in the stock market.
I follow a strategy called focus investing. Focus investing is a strategy used by legendary investors Warren Buffett and Charlie Munger. For more on my strategy, click here.
In this post, I will cover:
- My general thoughts on the market
- The S&P 500
- My Wolf Pie M1 Finance results
The biggest news affecting markets continues to be the coronavirus. The U.S government aid package and Federal Reserve easing seem to have stabilized the stock market, for now.
The S&P 500 is no longer in a bear market (a decline of 20% or greater). It last closed at 2929.8, still 13.7% off its highs.
There have been 32 bear markets from 1900 through 2013. On average, bear markets happen about every 3.5 years. An average bear market lasts 15 months with an average decline of 32 percent.
I have a 10+ year investing time horizon so I’m still investing for the long-run as usual and will continue dollar-cost averaging into my Wolf Pie.
My time-weighted portfolio return is +41.33% since I started it on August 23rd, 2019.
It’s up 23.54% in the past month since April 8th.
These are my 11 holdings and their respective cumulative returns (not time-weighted) since I started the portfolio. My cumulative portfolio return (not time-weighted) is 16.38%.
These are my 11 holdings and their respective time-weighted returns since I started the portfolio.
These are my 11 holdings and their respective time-weighted returns in the past month.
I’m going to change my strategy a bit. Instead of investing $20 a week, I’m going to invest $100 a month. Because this is a taxable account, I don’t want to have to spend too much time figuring out my cost basis when I eventually sell my stocks.
Another change I’m making is in regards to my bear market plan of investing $40 a week in bear markets. Instead, I plan to strategically invest an additional $300 if the S&P 500 declines 20%, 30%, 40%, or 50% from its all-time highs. The plan resets if the market goes back within 5% of its all-time highs again.
So what do you think? Share this story on social media and leave a comment in the comment box.
I/we own shares of all of the stocks depicted in the portfolios.
Except for Wolves of Investing, I/we are not receiving any compensation from and do not have any business dealings with any companies whose stocks are discussed in this article.
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Donnie Nguyen is the founder and CEO of Wolves of Investing. He started investing in the stock market in the early 2000s. He follows the teachings of Peter Lynch, Warren Buffett, and other investing legends. When he's not investing or blogging, he loves spending time with his family traveling and experiencing the world.
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