ladymaya
@ladymaya shared a post via Luca Mulargiu
Italy
1mo
Luca Mulargiu
Luca Mulargiu
Italy
1mo
**BEFORE COPYING, YOU NEED TO UNDERSTAND WHAT YOU ARE DOING** It has been a while since I wrote a post for those who want to start copying, or for those looking for a Popular Investor to copy. When someone thinks about copying a portfolio, the first thing they often look at is performance: last month, last year, compared to others. That’s normal. I understand it. But performance alone says much less than it seems. The first real question is not “how much can I make?”, but “how long can I truly keep this money invested?”. If someone has a time horizon of more than 5 years, they can think about an equity portfolio, while accepting volatility, drawdowns, difficult months and periods when the market doesn’t immediately reward patience. If the time horizon is shorter, the equity allocation should be lower. The shorter the time horizon, the lower the risk should be, possibly moving toward conservative instruments, such as a money market ETF. Often, the problem is not the market. The problem is starting with the wrong expectations. I sometimes see people invest 100% of their wealth into a copy, convinced they will hold it for years, and then close it after two months because performance is modest, the market goes down, or they realize they were not psychologically ready. It is much better to copy with a percentage that you can truly hold for years. Better to copy with 10%, 20% or 30% and remain invested calmly, rather than copying with 100% and closing everything after a few months. Equity investing requires time. Not weeks. Not two months. Years. Then there is the topic of goals. Investing €2,000, €3,000 or €5,000 will not make you rich after one year. With these amounts, the difference between making 10% or 12% in one year changes very little. What truly changes your financial life over the long term is the mindset: saving as much as possible, investing consistently, adding capital when you can, staying disciplined and repeating this process for years. That is where results are built, not by chasing one extra percentage point every month. We also need realistic return expectations. Warren Buffett built his record with an annualized return close to 20% for decades. So be careful with anyone who makes 30%, 40% or 50% annual returns look normal. They are not normal. And above all, they are not free. Return and risk always move together. There will always be someone who posts spectacular numbers in a single year, but you need to ask how those numbers were achieved. Did they use leverage? Derivatives? Did they concentrate everything in a few positions? Did they take huge risks? When things go well, everything looks easy. When things go badly, the risk is not just failing to make money. The risk is putting your savings in danger. That is why, when choosing a Popular Investor, you should not stop at performance. You need to read, understand and know who you are copying. Look at whether the person is serious, whether what they write is consistent with what they do, whether the portfolio reflects the method they describe, and whether they explain their choices even during difficult periods. And if you have doubts, ask questions. Your savings are at stake. Sometimes I smile when I think about this: when someone buys a TV, they ask questions, compare models, read reviews and check prices in different stores. Then, sometimes, they entrust their money to someone without reading anything, without asking a single question, without understanding the strategy and risks. That makes no sense. Another thing to look at is how much capital the Popular Investor is actually investing on eToro. Many operate with small amounts on eToro and may have larger portfolios with other brokers. Personally, I often show the size of my portfolio for two reasons: if I make a mistake, I am the first one to pay the consequences, and we can experience the growth of our portfolio together, week after week. If you go back through my page, you can read the Monday posts and see the evolution of the portfolio, with the explanations behind the choices made over time. As for my portfolio, those who follow me know how I think: I invest in individual companies, I do not use leverage, I do not use crypto, and I do not try to predict next week’s market move. I look for quality companies, with strong returns on capital and competitive advantages. Sometimes I buy, sometimes I do nothing, sometimes I hold cash because I don’t find enough attractive opportunities. The goal always remains the same: to allocate capital rationally, with a long-term horizon. Anyone who wants to copy my portfolio needs to understand this before starting. It is not a race. It is not a lottery. It is not a way to get rich quickly. It is an investment journey that requires time, patience and consistency. As always, if you have any questions, I am available here and also on LinkedIn. Have a great day everyone @LucaMulargiu
Not investment advice. The author may have financial interests in the mentioned instruments.
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