Luca Mulargiu @LucaMulargiu: "MONDAY PORTFOLIO UPDATE Here we are..."

Italy

MONDAY PORTFOLIO UPDATE Here we are again, this Monday, looking together at how things went. April ended with a truly outstanding overall performance for the markets. The S&P 500 posted its best month since November 2020 and, looking at some shorter windows of just a few weeks, we witnessed one of the strongest recoveries in recent decades. What can we take away from what happened? The first lesson, for me, is always the same: we need to stay invested. Exiting the market thinking we can predict the future, with the idea of selling before the declines and getting back in exactly at the lows, is much harder in practice than it sounds. The real risk is another one: missing the best days. And once the market starts rising, people often stay out with the belief that “it will come back down anyway.” Then maybe it doesn’t. Or it falls less than expected. Or it starts moving up again before we’ve had the courage to get back in. And that’s how, over time, mediocre portfolio performance is built — not because the market didn’t offer opportunities, but because we made things too complicated ourselves. As you know, I never talk obsessively about our portfolio’s performance. You can check that directly, without me giving you a daily recap of whether the market was up 1% or down 1%. We need to focus on something far more important: allocating capital sensibly. Over the past few months, we’ve invested a lot of money. Now all we have to do is let time work and see whether our capital allocation decisions were correct. We don’t need to rush. The recipe for building significant capital is not trying to squeeze out one extra percentage point at all costs. It’s not taking excessive risks. It’s not putting capital at risk in pursuit of quick results. The recipe is much simpler, but also much harder to apply: patience, discipline, time, saving as much as possible, spending less than we earn, and investing the rest consistently. Repeated for years. As you can see, once again I’m showing you the value of my portfolio. We’re at around €270,000. I share this for two reasons. The first is that those who copy me need to know that, in the decisions I make, I’m the first one involved with my own savings. If things go badly, I’m the first one to pay the consequences. The second is that I want to send a simple message: I didn’t reach these figures because I’m smarter than others or because I know some special secret. I simply worked hard, saved as much as possible, invested as much as possible, and let compound interest do its job. Above all, I tried not to do stupid things. Sometimes I preferred to give up an extra percentage point rather than take meaningless risks that could have damaged the capital. Because the point isn’t to look good in a single month or a single year. Performance is often pure ego. Reaching our financial goals is what truly matters. In April, I added €300 of new cash. We also received: $36.43 in interest on cash $19.50 from $KO (Coca-Cola) $38.95 from $Samsung $49.49 from $Airbus $21.13 from $TSM (Taiwan Semiconductor Manufacturing Co Ltd - ADR) $107.16 from $JD $18.41 from $Nike $72.25 from $Novo For a total of $363.32 between interest and dividends. Total cash is now around $15,000, equal to about 7% of the portfolio. Over time, I’d like to try to double it, so that we’re ready for the next market declines. Because declines will come, as they always have. The difference will be how we face them: with fear, or with cash, clarity, and a plan. As always, for anything you may need, I’m available. You can message me here or on LinkedIn; I’m always happy to reply to everyone. Have a great day everyone @LucaMulargiu

Not investment advice. The author may have financial interests in the mentioned instruments.

3 Mentioned

Coca-Cola

TSM

Taiwan Semiconductor Manufacturing Co Ltd - ADR

LucaMulargiu

Luca Mulargiu

Strictly Necessary Cookies

Performance Cookies

Functional Cookies

Targeting Cookies