To The Moon

Current Portfolio Overview

My current investment portfolio comprised TLT, TLH, OXY, and RC. While I maintain confidence in these holdings, I also made several trades earlier in the year, selling a mix of ETFs and stocks such as TMF, Ford, DBI, WBA, SCHW, PSEC, BEN, ABR, Grab, GOVT, LSXMA, and FLG (previously NYCB). Despite some underperformers, my portfolio achieved an overall profit for the year.

Among my most successful realized profits, FLG and VLY stood out as my top two gainers. Conversely, my largest unrealized loss came from OXY, though I remain optimistic about its prospects. I see OXY as undervalued, with strong long-term potential, which reinforces my decision to hold it despite temporary setbacks. Importantly, I view unrealized losses as opportunities for growth and learning, treating them as "tuition fees" for the valuable lessons they impart.

Key Reflections and Insights

Reflecting on my 2024 investment journey, I identified several successes and areas for improvement.

What I Did Right?

1. Avoiding FOMO (Fear of Missing Out): This year, some stocks experienced massive surges. While it was tempting to chase these rallies, I resisted the urge. Avoiding FOMO allowed me to maintain a disciplined approach and avoid potential pitfalls associated with chasing overvalued stocks. For example, some stocks that seemed attractive during their hype phases ended up underperforming or declining, reinforcing my decision to stay cautious.

2. Dividend-Focused Strategy: Investing in dividend-paying stocks and ETFs proved to be a sound strategy. Dividends provided a steady income stream, particularly during periods when stock prices were down. This approach aligned with my philosophy of not selling during unrealized losses, as the dividends offered tangible returns even when market conditions were challenging.

3. Learning from Past Decisions: Every trade, whether profitable or not, contributed to my growing investment knowledge. By reflecting on both wins and losses, I’ve developed a deeper understanding of market dynamics, risk management, and my personal investment style.

Areas for Improvement

1. Enhancing Technical Analysis Skills: While my focus has been on fundamentals, I recognize the value of technical analysis in understanding market trends and timing entry/exit points. Learning to interpret charts, moving averages, and other technical indicators could improve my decision-making and provide a more well-rounded perspective.

2. Diversifying Beyond Comfort Zones: While I’m satisfied with the dividend focus, I could explore other opportunities, such as growth stocks or alternative asset classes, to create a more balanced portfolio. Diversification can help mitigate risks and provide exposure to different market cycles.

3. Regular Portfolio Reviews: Conducting more frequent reviews of my portfolio performance and allocations could ensure alignment with market conditions and long-term goals. A structured review process might also help identify underperformers earlier.

Lessons Learned

1. Patience is a Virtue: Investing is a long-term game, and I’ve learned to embrace the ups and downs with composure. My confidence in stocks like OXY is a testament to this mindset.

2. The Importance of a Strong Thesis: Before purchasing a stock or ETF, having a clear investment thesis is crucial. This year, my best-performing assets were those backed by thorough research and conviction.

3. Adaptability Matters: While 2024 was profitable, the ever-changing market landscape emphasizes the need to remain adaptable. Keeping up with market news, trends, and innovations will be vital moving forward.

Goals for 2025

1. Expand Technical Knowledge: Invest time in learning technical analysis tools and strategies to complement my fundamental analysis.

2. Build a More Diversified Portfolio: Explore opportunities in sectors or regions currently underrepresented in my holdings.

3. Improve Risk Management Practices: Incorporate strategies like position sizing to better manage risk.

4. Focus on Continuous Learning: Commit to ongoing education through books, courses, and market analysis to refine my investment approach.

5. Reinvest Dividends Strategically: Use dividends to acquire undervalued assets or reinvest in high-performing positions.

Conclusion

My 2024 investment journey was both profitable and educational. By avoiding FOMO, focusing on dividends, and reflecting on my trades, I navigated the year with relative success. Looking ahead, I aim to refine my skills, enhance diversification, and continue learning from the market. Each decision, whether a gain or a loss, contributes to my growth as an investor.