Actionable ideas to make you a better investor, full portfolio transparency with real-time trade alerts (see exactly when I buy, sell, trim stocks), pre-screened thematic watchlists, data visualizations, macroeconomic insights, microeconomic company-level analysis (including my Stock of the Week), and investor mindsets, strategies, and hacks. Gain investing advantages with OB’s Sunday Investor newsletter here >> Always free.
• • •
I’m still awaiting the final numbers that include December, 2020 but through November my Target List Averaging (TLA) Strategy has returned 165% since January! For comparison, during that same period of a tumultuous 2020 the S&P 500 Index returned 17.46% (thanks broker’s app for that tidbit!).
My TLA Strategy returned 10x more than the perennial benchmark!
I spent most of Q3 and Q4 thinking about how I should monetize my TLA Strategy, as I truly believe in it and am excited to continue running it through 2021 and beyond. I spoke with a lot of people that gave me tactics, techniques, and procedures to capitalize on my valuable information, skill, and The TLA Strategy. “Get licensed and join a firm” one person told me; “Start an investing club” another person said; “Keep it just for yourself and keep things easy” I heard as well. Business-wise the advice was pretty sound.
I can tell you now that my existing (and first) TLA portfolio is Aggressive. If that suits you, then excellent.
But I am going to start a second TLA portfolio that is Conservative-Moderate risk and full of blue chip stocks.
This way, depending on which risk level suits you, there is an option for you to follow. Either copy it daily, or consider it a useful beacon.
Now back to the regularly scheduled program…
This New Years Day morning I was eating breakfast with my wife and son, and a slice of humble pie (I love eating pie for breakfast) told me this…
Not every year will return 165%! I mean, the average annual return since the Great Depression has been about 5.3%. And in the last 50 years it has been about 6.6%, per NerdWallet. For perspective, if you invested $10,000 per year at 6% for 20 years you’d have $399,927! $200,000 of that would be the $10k you put in each year and ~$200k would be your gains. Pretty awesome!
But if you gained 165% over that time you’d have almost $4.7 billion! So yeah, as happy as I am (and should be!) with 165% in 2020 that piece of humble pie is probably correct. Vegas doesn’t track me, but if they did the odds of 20 years at 165% would be about nil. But…
Outperforming the S&P by 10x is immense, and sustaining an outperformance of that Index is very doable.
Although my original TLA Strategy portfolio is Aggressive, it is specifically designed to increase a portfolio’s stability. To properly execute my TLA Strategy I buy a stock each trading day (and only occasionally sit out a trading day); this develops and averages the portfolio. I know of no better way to build an Aggressive (and in 2021 to add a Conservative-Moderate) portfolio which hedges risk while capitalizing on over-penalized/undervalued stocks. The approach is Steady.
And for the record, victory is indeed sweet. But that humble pie from this morning… well, it was exactly what I needed to start the new year!
• • •