Track Record #4
It has been four months since we opened 4 accounts at Interactive Brokers and invested 10,000 dollars in each one in accordance with the four investment strategies. Today is 23.02.2025, and it’s time to see what happened to our portfolios under each strategy as of 22.02.2025. Since that was a weekend day, we’re looking at the last trading day - the close on Friday, 21.02.2025.
What happened to the portfolios
We can see that there has been a significant drawdown in assets over the past month
- INDIGO strategy: in 4 months, $10,000 grew to 10,204.27 dollars.
We will see this happen again and again, across all strategies. Our portfolios contain a small number of positions, which is why they are highly volatile. But this is the price we pay for the strategies’ high returns.
- GREEN strategy: $10,000 turned into $10,097.19 after 4 months. Not great.
- ORANGE strategy: the initial investment of $10,000 has grown to 10,216.50 as of today.
- YELLOW strategy: here we are actually showing losses. The initial investment of $10,000 has now decreased to 9,910.79.
It’s a long-term game
The past month has not been a good one for our investments. That’s all right: this kind of thing will happen again and again, and we’ll see even more significant drawdowns. We’ll have to get used to it. Therefore, those who can’t handle such ups and downs shouldn’t invest for the long term. Long-term, high-yield investments in stocks are for people who understand that high returns come with high volatility.
The overall results for all strategies as of 22.02.2025 are presented in the table. We see that one of the strategies - YELLOW - is showing losses, while the others are showing profits, though these profits have decreased compared to last month. Overall, across all four accounts corresponding to our four strategies, we have earned a total profit of just 1% over 4 months. This is less than investing in the S&P 500, which currently shows a 3.2% return.
It’s very important to understand that this will continue to happen in the future. Investing in stocks is a long-term game. In this game, success is measured in years, not months. We do not trade on the stock exchange. The composition of our portfolios has remained unchanged since the very beginning and will remain so for another 20 months. Only 2 years after we began investing will we change the composition of our portfolios.
Learn more here: https://gregbar.livejournal.com/945143.html?newpost=1
You can view the stocks selected by the strategies as of today here: https://avistocks.com/redfree
And here: https://avistocks.com/subscribe
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