This is the final monthly update of my M1 Finance Wolf Pie portfolio for August 2020. It’s been one year since I started the account. I started this portfolio from $0 in August 2019 to demonstrate how to invest your first $1,000 (and beyond) in the stock market. The $1,000 milestone was reached a few months ago. The next major milestone is $10,000.
I’m investing in this portfolio as if I were still a struggling college student working low-paying jobs to pay my way through school. Back in college, I had very little to invest after expenses. This is a portfolio that even I at that young age could have followed. Check out all of the previous portfolio updates to track my journey.
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
- Changes to the portfolio (if any)
MY THOUGHTS ON THE STOCK MARKET
The stock market finally closed at all-time highs for the first time this past Friday (August 21, 2020). There’s a lot of positive sentiment in the markets.
The Federal Reserve is keeping rates at historically low levels. China, where the outbreak started, has recovered from coronavirus. This gives some hope that the rest of the world will eventually recover.
Tesla (NASDAQ: TSLA) and Apple (NASDAQ: AAPL) announced stock splits. Apple became the first company with a market cap of two trillion dollars.
The U.S. presidential race is starting to ramp up. There may be a lot of anxiety in the markets over the next president.
THE S&P 500
The S&P 500 last closed at 3397.20, a new all-time high!
Although the market seems frothy, I learned to never try and time the stock market. It can and will do the exact opposite of what seems reasonable. And it tends to do it for much longer one would think is possible.
I have a 10+ year investing time horizon so I will just continue dollar-cost averaging into my Wolf Pie.
WOLF PIE M1 FINANCE RESULTS (AS OF AUGUST 21, 2020)
My money-weighted portfolio return is +83.81% since I started it on August 23rd, 2019.
It’s up 4.21% in the past month since July 22nd.
These are my 11 holdings and their respective cumulative returns (not money-weighted) since I started the portfolio. My cumulative portfolio return is 33.68%.
These are my 11 holdings and their respective money-weighted returns since I started the portfolio. The Trade Desk (NASDAQ: TTD) is the best performer at +212.53%. Republic Services (NYSE: RSG) is the worst performer at +18.74%.
These are my 11 holdings and their respective money-weighted returns in the past month. Illumina (NASDAQ: ILMN) was the worst performer at -8.99%. NVIDIA (NASDAQ: NVDA) was the best performer at +22.93%.
CHANGES TO THE PORTFOLIO
Last month, I planned to raise my contributions to $60 every two weeks but postponed that change to next month. I continue to invest $50 every 2 weeks. I’d prefer to invest every week, but I want to make sure that I invest enough to avoid having too many excluded trades.
These are the changes I made to the portfolio targets. I added Roku (NASDAQ: ROKU) and Square (NYSE: SQ) to the portfolio. These are new to the portfolio, but not new to me. I’ve owned Roku and Square in my larger portfolios for a few years. I think they are amazing growth companies that are still in the beginning phases of their growth story.
I also lowered my target on Paycom (NYSE: PAYC) and Moody’s (NYSE: MCO) to 1 percent. Although I still like both companies, I don’t plan to add new money to them in this portfolio at this time.
|Ticker||Old Target %||New Target %|
NEW ADDITIONS AND SELLS
There were no sells in the portfolio since my last update. Although I added Roku and Square, no investments went into them yet.
I plan to raise my contributions to $60 every two weeks starting next month. I’ve now passed the one-year anniversary of the account. Just like I would tell my younger self after getting a raise from a job every year, I plan to steadily increase the contributions in this portfolio every year, too.
As I previously mentioned, I added Roku and Square to the lineup, so I will start purchasing shares in these two companies soon.
Investing on a budget doesn’t have to be complicated. In this account, I just invest in companies that I know and understand very well. I dollar-cost average. The portfolio reached the $1,000 mark a few months ago. The next milestone is $10,000.
Follow my journey every month. Sign up for the email list for updates and receive my free eBook. Share this story on social media and leave a comment in the comment box to let me know what you think.
DISCLAIMER: I'm not a financial advisor. These are my opinions and provided "as-is". It is not an offer to buy or sell securities. Read the Terms and Conditions.
I/we own shares of all of the stocks depicted in the portfolios, including the new additions ROKU and SQ.
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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