If you’re an investor you have at least 2 portfolios you take care of. But Why? Why would you need 2 portfolios? Well in today’s video I am going to tell you!
00:00 2 portfolios
If you don’t have two at least how can you call yourself an investor? A serious investor always have multiple portfolio that he or she is taking care of. One portfolio is the serious one that’s the one we use to make serious money with and is used for future situations. And then there is always a second one that’s your play portfolio in which you take risks to learn, but also use to risk and make a nice return once in a while and this portfolio is also used to make a loss with that’s alright.
01:13 Learn and take risk
The most important reason you should have 2 portfolios is that you should always have one to learn and take risks with. Normally, if you would ask me if I invest in cryptocurrencies my answer would always be the same. And that’s no I don’t invest in cryptocurrencies. But last year, I had someone give me some bitcoin. Well, actually, it’s slightly different. He created an account for me sent some bitcoin to it and told me to trade with it and make money with it. Now, I told him I didn’t want to. So in the end, I gave it back to him. But if you see the bitcoin now you would say I was crazy.
04:56 Portfolio to make money with, with risk control
Investing in companies like GameStop are just a fling, or a temporary situation. You can’t be betting on situations like these. But, investing your money in companies like Tesla or Apple might also not be the case, as these companies have no real drops and high peaks in a short amount of time, so the volatility is gone. And therefore, this might not be the money making stocks within 1 or 2 years’.
Now, this step should always be the second step.. as you should always be making money first, with investing, and then next step should be retaining that money, and make a stable return with that amount. This investment portfolio should not have huge losses, as this is your retirement portfolio, so you should know very clearly what to do with these investments.
06:44 Other portfolios to keep things separated
Well, yes, that is because I also use stocks to set aside my money for a short term as well. And with short term I mean within 1 year time. And if you’re wondering why well, that’s very simple. I have multiple streams of income, like rental income from my properties. And instead of just leaving the rental income on my bank account, I set those amounts aside each month as well, and the moment I need those funds, I can take those from my rental income investments portfolio. And if those investments are not positive, I just won’t touch those amounts, and leave them in.
08:48 How I divide it
My learning and risky portfolio had only 1000 thousand euros in it , when I started out with this.
And each time, I made a huge return with it, I would take out the profits, and place the profit in my stable return investment account, and leave the risky account with the remaining 1000 thousand euros. And this is how I grew my investment account in just a few years’ time from just 1000 euros up to 100,000 thousand euros.
