Road to $10 Million Update (Q1 2024)

This quarter was likely among the top three most successful quarters in my entire investment journey. The show of the star was none other than Nvidia, a stock that soared in value as it lifted many other of my top 5 holdings due to its correlation with the AI craze. I was quite lucky to have gotten into NVDA early and has been fascinating to watch the unfolding reality mirror the thesis I had laid out many years ago.

I Sold

The driving force behind my decision is risk management and pursuit of sustained long-term returns with lower vol if possible. I am dropping more weights on the capital preservation side on my scale. Higher returns in the short term don’t necessarily make a good investor. My investment strategy is fortified by goals and safeguards that are designed to hopefully reduce major setbacks in a variety of market scenarios. So, I sold some NVDA. The holding has grown so large that a single stock began to dominate and dictate the performance of my entire portfolio. However, it still remains my largest holding. I will likely be trimming this stock more often if it continues to weigh too heavy in my portfolio.

A few monumental successes can indeed make up for numerous mistakes. Looking back, the few home runs have compensated for the many less fortunate decisions I have made over the years. From the poorly timed trades to misplaced faith in companies that never recovered, my investing history was far from perfect. Yet, all the mistakes have become lessons that have honed my investment philosophy, gradually reduced the frequency of mistakes, and helped refine my decision-making process. Today my approach is far more selective and grounded in deeper research and understanding of the sectors I’m passionate about. The hope is I learn from my mistakes resulting in better quality decisions over time.

Here is an interesting chart. This is probably one of the reasons why most individual investors underperform the major benchmarks.

Onwards with the update!

Add 500 shares of QQQ to LBF Dividend Portfolio

Currently at 87/500 shares of the Q’s! 🤺

Just chipping away at this goal month after month.

Invest at Minimum $1,500 per Month Into The Dividend Portfolio

I like to give each and every portfolio a salary. The LBF Dividend Portfolio had a total net inflow of $6,973.68 YTD ($2,324.56 average per month) by the end of Q1.

A decent start to the year! If I’m lucky, the income generated from this portfolio may be enough to fund it’s salary! It’s expected to pay about $18,000 in dividend income this year which amounts to $1,500 per month! 😌

Reach a $50,000 Fundrise Portfolio

• iPO share price remained the same for the quarter. Currently, iPO investment gains are up 104.7%.
• Total combined value of Fundrise investments comes to $45,737.74.

Interested in Fundrise? Sign up using my referral link and get started!

Maintain steady portfolio growth between 6% to 12%

This year started off like a rocket ship. It’s very rare to see such a performance in just 3 months. Yes, all thanks to this AI craze lifting many tech stocks all together. It’s important to remember that anytime a stock has an exponential break out, the probabilities of things being overdone is high. I’m reminded that there is no reason for me to be greedy here and prudent risk management is likely a wise step to take.

Invest $200 per Month into M1 Growth Pie

It’s amazing what a few hundred dollars a month can turn into with a bit of luck and patience.

The changes I make to the pie are not updated on links from prior posts so if you are interested here is an updated link to my M1 LBF Growth Pie! Keep in mind that the turnover in this portfolio is relatively high, so the performance figures won’t accurately represent my personal performance. Instead, they will merely display the current holdings within the portfolio as of writing this post.

Sign up using my link and we both get $100 to invest! Sign up with M1 Finance!

Achieve positive cash flow every month of the year

This quarter was not littered with surprises. No large expenses and major repairs. However, larger expenses are on the horizon so I expect a few dips this year.

Increase annual income by 6% every year

I estimate my retirement has about 50 more years remaining. That’s a huge amount of time to compound wealth. I’m curious to find out how that tail end of my compounding journey will look. To see this to fruition, it’s important to shelter from inflation and provide a stable environment for my investments to compound. I expect inflation to be around 2 to 4% averaged over the long term. The goal is to stay above inflation at minimum.

Maintain long term average savings rate at or above 30%

Great start to the year and inline with expectations.

Maintain beyond FIRE net worth growth average above 6%

Net worth YTD: +11.7%

Just a short 3 months, my net worth has grown by 11.7%. We can end this year right where we are and I would be content. What a run for many equity investors! Congrats to all!

ETA 10 Million

Taking into account current trends, projections, and expectations for future growth, the estimated time frame to achieve a $10 million net worth is as follows:

Number of years to reach $10 million net worth:

Best case to Worst case: 14 to 28 years

By what age?

Best case to Worst case: Between 57 and 71

What would compounding till the age of 83 look like? $19.4 million (Worst Case) $164 million (Best Case)

The idea that a fortune of $164 million can be achieved can sound crazy, yet the math suggests its within the realm of possibility! I believe it’s not only possible but entirely feasible with the right strategies in place. Of course, it all depends on how I execute my disciplines over a very long period.

In the past, the idea of reaching a net worth of $164 million during my lifetime would have seemed laughable. Now, with a deeper appreciation of the power of compounding, I can see the path to such figures clearly. Despite my current age, I find myself optimistic about having sufficient time to grow my wealth. For those in their 20’s or 30’s, you’re in an advantageous position as time is indeed a valuable ally in your wealth building journey! So don’t wait and start investing NOW!