My Portfolio: Stocks, Peer-to-Peer Lending, Crypto, and more
A lot of people ask me if I leave all my investments to “The Machine” or if I try to diversify by adding more asset classes. In general, I try to automate as much as possible and plan for the long term.
Here is the break-down of my portfolio.
1/ Equities
My medium-to-high risk portfolio was created and is managed by AgentRisk, based on my risk profile and I only check it when the A.I. decides to deploy a new strategy. It has exposure to the US and European Stock Market, Real Estate, Energy, Gold, high-yield companies, and Municipal (tax-free) Bonds. It also includes automatic tax-loss harvesting, 1-day liquidation and a couple of more smart features.
2/ I get Algorithmic Dividends™ almost every month
Last year I got an extra boost from ETFs that were sitting idle in my account, without me doing anything at all. Sounds interesting? You should check out our post on Algorithmic Dividends, bearing in mind that they come with a certain amount of risk.
3/ Cryptocurrencies
I own Ethereum, DAI, some Bitcoin, and a couple of more coins (BAT and TurtleCoin). For me, cryptocurrencies are more of a scratching a technological itch than making money (which ironically I made with Ethereum and DAI).
4/ Startups
I invest 5% to 7% of my net worth in Startups and I participate as an investor in a European VC. Finding good startups to invest is a full-time job so I prefer investing through investment vehicles, unless I personally know the team.
5/ Peer-to-peer lending
I find the peer-to-peer (P2P) lending model quite interesting. In 2018, I decided to invest around $50k on LendingClub. Essentially, all my portfolio is managed by an algorithm that finds high risk loans with the lowest probability to default. It seems to be working pretty well so far and I plan to expand to other platforms, such as Prosper.
P2P lending is uncorrelated with the stock market (to some degree) but it is not tax efficient at all, so make sure you have it in a tax-sheltered account.
6/ Cash
It is vital to have money set aside for a rainy day. I use Marcus for CDs and savings account.
7/ Individual stocks
I only own Nintendo, LINE, Tesla, Splunk, and Alphabet as individual stocks. Of course, “The Machine” disagrees with the allocation but I call this my “guilty pleasure”.
8/ Real Estate
For a long time, I avoided Real Estate due to the fact that the market is not as liquid as the stock market and can be extremely irrational. However, the hard truth is that it is an excellent diversification asset which can offer a lot of leverage, despite it not being as uncorrelated with the stock market as many people think.
9/ My own company
AgentRisk is mostly self-funded with some funding from Angels that we love working with. I love being able to execute our vision without having VCs or shareholders forcing us to use their products. Being able to focus solely on delivering an epic product to your customers is the best thing an Entrepreneur can wish for.
It is critical of course to consider your company part of your portfolio and minimize any other risky investments.
What is your portfolio comprised of? Is it balanced?
If I can help in any way, feel free to reach out @jonromero.
At AgentRisk we are building a sophisticated data-driven Wealth Management platform, using state-of-the-art Machine Learning algorithms and time-tested investment theories. Come check us out!
