Core Principles

1. Diversification: We spread risk across multiple asset classes, sectors, and geographies to protect against concentrated losses.

2. Income Generation: Dividend collection is a core feature of our portfolio, providing steady cash flow and compounding opportunities.

3. Long-Term Perspective: Our investment decisions are made with a multi-year horizon, allowing us to benefit from compounding and ride out short-term market volatility.

4. Quality First: Emphasis on companies with strong balance sheets, competitive advantages, and predictable cash flows

5. Rational Decision Making: Evidence-based investing decisions, not emotional reactions to market movements

Essential Learning Resources

Foundational Books

1. The Psychology of Money by Morgan Housel

2. 100 Baggers by Christopher Mayer

3. Quality Investing by Lawrence A. Cunningham

4. The Most Important Thing by Howard Marks

5. One Up On Wall Street by Peter Lynch

After you cover the basics

1. Poor Charlie Almanack

2. Compounding Quality e-book

Great to audiobook

1. All “The Little Books,” Common Sense Investing, That Still Beats the Market, Valuation

2. The Richest Man in Babylon

Online Courses

1. Aswath Damodaran’s Valuation @ NYU Stern

2. Brian Feroldi’s Long-Term Mindset course

YouTube Channels & Podcasts

On Youtube

Joseph Carlson was the first YouTube analyst we paid attention to. His investing style is influenced by the same masters we inspire. You will get value from his main channel and secondary after-hours thoughts.

Ben Felix provides evidence-based investing principles that will hurt the beginner’s investor brain. Take it as a personal challenge and growth path to comprehend his thinking.

Brian Feroldi was a Motley Fool contributor who took his own path and delivered great content to the community. Start with the Cash flow statement, Income statement, Balance sheet, and How the 3 financial statements link together

On Podcasts

The Best One Yet, previously Robinhood Snacks, is our daily podcast, which provides 15 minutes of market news entertainment.

The Memo by Howard Marks, incredible thinking worth sitting back and taking notes.

Financial Publications & Research

1. Seeking Alpha, deep-dive analysis from diverse contributors

2. Financial Times, global market coverage, and premium market insights

3. Motley Fool Stock Advisor, long-term focused stock recommendations, and educational content

Research & Analysis Tools

1. Qualtrim, portfolio tracking and analysis, dividend monitoring, performance metrics, and KPIs

2. Finviz, market visualization

3. FiscalAI, AI features for conversational analysis

4. TipRanks, analyst consensus & price target

What to read next

Q3-2024 Portfolio Quarterly Report.

Access eToro portfolio.

I believe in a balanced approach to long-term wealth creation that combines the stability of broad market exposure with the potential for outperformance through select satellite positions. PositiveFund’s strategy is designed to provide steady growth, generate income through dividends, and capitalize on specific market opportunities.

Core Principles

1. Diversification We spread risk across multiple asset classes, sectors, and geographies to protect against concentrated losses.

2. Income Generation: Dividend collection is a core feature of our portfolio, providing steady cash flow and compounding opportunities.

3. Long-Term Perspective: Our investment decisions are made with a multi-year horizon, allowing us to benefit from compounding and ride out short-term market volatility.

Portfolio Composition

Our portfolio is structured with a core-satellite approach:

Core Investments (60-70% of portfolio)

These core holdings provide a stable foundation for long-term growth and income generation.

1. Broad-market ETFs (e.g., Vanguard S&P 500 ETF)

2. Dividend-focused ETFs (e.g., Schwab US Dividend Equity ETF)

3. Real Estate ETFs (e.g., Vanguard Real Estate ETF)

4. International ETFs (e.g., Vanguard Total International Stock ETF)

Satellite Positions (30-40% of portfolio)

Satellite positions allow us to potentially enhance returns through select opportunities and emerging asset classes.

1. Individual Stock Picks: Focusing on established companies with strong dividend histories and growth potential in sectors like technology, finance, and energy.

2. Cryptocurrency: 5 to 7% allocation to established cryptocurrencies like Bitcoin and Ethereum.

Risk Management Strategies

To manage risk effectively, we implement the following strategies:

1. Diversification: Spreading investments across various assets, sectors, and geographies to reduce overall portfolio risk.

2. Position Sizing: Limiting the size of individual stock and cryptocurrency positions to manage exposure to any single investment.

3. Regular Monitoring: Continuously evaluating our holdings to ensure they align with our investment thesis and risk tolerance.

4. Stop-Loss Orders: Implementing stop-loss orders for more volatile investments to limit potential losses.

5. Dollar-Cost Averaging: Gradually building positions over time to mitigate the impact of market volatility.

Rebalancing Approach

We employ a simple yet effective rebalancing strategy to maintain our target allocations:

1. Periodic Review: Assess the portfolio quarterly to identify any significant deviations from target allocations.

2. Threshold Rebalancing: Rebalance when any asset class or individual position deviates by 5% or more from its target allocation.

3. Tax-Efficient Rebalancing: Utilize new contributions or dividend reinvestment to rebalance when possible, minimizing taxable events.

What to read next

Q3-2024 Portfolio Quarterly Report.

Access eToro portfolio.