Investment Philosophy
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.
Broad-market ETFs (e.g., Vanguard S&P 500 ETF)
Dividend-focused ETFs (e.g., Schwab US Dividend Equity ETF)
Real Estate ETFs (e.g., Vanguard Real Estate ETF)
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.
Individual Stock Picks: Focusing on established companies with strong dividend histories and growth potential in sectors like technology, finance, and energy.
Cryptocurrency: A 5-8% allocation to established cryptocurrencies like Bitcoin, Ethereum, and Cardano.
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.
