This is an update on my “Model 5Y Portfolio” set up on October 1st, 2024 with an initial investment amount of £500,000.
It’s been an eventful Q4, most notably, Trump won the election. We’ve seen strong gains for the portfolio given the significant allocation to Bitcoin and US equities (TSLA, COIN, MSTR) as a result.
Here are the key portfolio metrics:
- Portfolio Value: £715,827
- Initial Investment: £500,000
- QoQ Performance: +43.17%
- Annualized Performance: +172.66%
Full portfolio update here: Google Sheet
The big winners were Bitcoin, Crypto and US Tech Stocks. Here’s a table of each positions’ gain and loss.
Rebalancing and Trading Actions (December, 2024)
- Trim down the Microstrategy (MSTR) position by 50% and rotate it into Bitcoin (BTC)
- Why: MSTR is 2x the volatility on BTC. It’s great on the way up, and not so great on the way down. My strategy will be to systematically rotate out of MSTR into BTC by June 2025, taking profits along the way.
- Why: MSTR is 2x the volatility on BTC. It’s great on the way up, and not so great on the way down. My strategy will be to systematically rotate out of MSTR into BTC by June 2025, taking profits along the way.
- Trim down the Tesla (TSLA) position by 25% and rotate it into Amazon (AMZN)
- Why: TSLA has a P/E ratio of 126. This is not sustainable. We want to lock in some of those Trump narrative profits. I want to build a position in Amazon given its monopoly power in ecommerce, purchase of nuclear plants, and the opportunity AWS has in disrupting Nvidia’s business. At 47 P/E ratio, it seems like a good value buy.
- Why: TSLA has a P/E ratio of 126. This is not sustainable. We want to lock in some of those Trump narrative profits. I want to build a position in Amazon given its monopoly power in ecommerce, purchase of nuclear plants, and the opportunity AWS has in disrupting Nvidia’s business. At 47 P/E ratio, it seems like a good value buy.
- Trim down the Apple (APPL) position by 20% and rotate it into Amazon (AMZN)
- Why: Apple’s PE ratio is at 37, far higher than Meta and Google. Also I suspect they will have backlash on the iPhone 16 as they promoted all these AI features that are no where to be seen. Seems like a good time to trim some profits and rotate into Amazon (AMZN).
Post trading and rebalancing actions, the portfolio looks like this:
That’s all for now. See you in March.