2020. What a wild year in our lifetime. I’m sure it was an unforgettable for everyone in all kinds of ways — Prayers to those whose lives were impacted by the pandemic in any kind. Retrospectively, there are many lessons to be learned from 2020 — both in public health (yes, masks did work for the societies who wore it) and in finance.
I started last year expecting steady economic growth and by mid-January I quickly realized something is terribly wrong. I was one of the few that were highly concerned about the new strain of coronavirus yet most around me did not seem to care at all. I quickly took action to hedge my portfolio- with $1 short in a retail stock with each $1 I have invested in the stock market. My entire portfolio was preserved through the flash crash in March and only went up from there once I recovered the positions. I ended the year with +66.69% in account value vs. S&P 500’s +16.26%. I wrote this not to brag about my performance but to emphasize the importance of managing risk rather than YOLO’ing into a one-hit wonder (till this day I still don’t own Tesla and kick myself everyday for it, but I can never own it going forward because I can never justify a purchase with any valuation metric in my valuation models).
If you know me personally, you know I always say ‘I don’t know’ to your question if I don’t have knowledge to speak intelligently to it. However, along with my rigorous studies in financial analysis & valuation and real-world practice in managing USC’s Student Investment Fund and working in investment banking as a Summer Associate, I’ve became a lot more confident in managing risks and striving for returns in a portfolio.
I have always been passionate in topics of education in finance, M&A, and investing and have actually volunteered in Queens, Harlem, and Bronx neighborhoods in New York City teaching over a hundred young adults about financial literacy. Just from observing what most people talk about finance and investing, I realized there are a lot to be taught to an everyday person about those topics. I then decided to start writing about these topics for anyone who might find it helpful.
I will first start posting a series about a portfolio closely mimicking to what I actually own in my personal portfolio. I imagine through reading my investing memo, one could possibly learn about what managing a personal portfolio (not just everyday speculating) might look like.
Depending on how the responses are from the readers, I might write about other things, but here we start!
Mixed bag of growth/value portfolio with focus on both the IT sector and value-driven multi-sector value dividend stocks. Intentionally avoiding ultra-high valuation positions
Cash — 10%
Still cautious about economy and high valuations in 2021; bullets in case of correction
Alibaba — 15%
Opportunity with recent pullback. LT growth in APAC still very solid
AT&T — 15%
Strong operating cashflow despite bad investor sentiment; high dividend value play
Hubspot — 15%
High-growth CRM SaaS product offering accelerated by pandemic; very high valuation
B&G Foods — 10%
Sector: Consumer Staples
Defensive position in consumer staples; high dividend value play
Pfizer — 10%
Exposure to healthcare with dividend value play
J.P. Morgan — 5%
Exposure to financials with dividend value play
Amazon — 5%
Continued growth under pandemic environment; new markets (geographic & sectors)
Google — 5%
New & sustained future growth opportunities (auto, AI, data, YouTube)
Facebook — 5%
Strong market position to sustain future earnings growth. High risks on regulatory front
Newmont — 5%
Dividend gold mining co. hedging against extraordinary events related to rising gold $