Brief explanation of what we are doing?

Update (Jan 2021): The way I’m handling this investing case study has been changed going into 2021. It seems wasteful to monitor insignificant market fluctuations weekly and even more wasteful/disingenuous to pretend that it’s adding any kind of educational value.

There are already many online services that give a more useful look into the world of investing by posting this kind of data over a broader range of securities, so instead of just posting random data and my thoughts, I’m going to try to be more helpful.

To do this, I’m going to do a few things:

1. Post updates roughly every 6 months (instead of weekly) so I’m not trying to make sense of super short-term and irrational price action.

2. Updates will include a comparison of another portfolio I’m managing, which is managed in a completely different way. This is how this “study” was supposed to be done from the start, but there were difficulties in the execution of it. Overall, this should help provide insight into how the stock market works and help investors see first-hand how different strategies perform. (mainly passive investing vs. a more emotional approach)

3. Try to add more useful insight. Just seeing numbers and some quick thoughts from a random person on the internet doesn’t REALLY add a lot of value, BUT value can be added by being more thorough and showing examples, and opinions, of different situations an investor may experience.

We are going to do a number of things here:
1. Invest ~$110 dollars up front, then $25/ week 
2. Monitor how our portfolio grows
3. Learn from the experience
4. Profit
5. Help people

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Goals of this case study

I learn by doing things, and a lot of people don’t have the ability to do what they want to do, so I figured we could have some fun and see what happens when a person invests in the stock market!

Data:
I’ve always learned much better by getting my hands dirty and messing with things, so that’s what I’m doing!

Knowledge is power, and experience is priceless, so I’m doing what I can to build up both of those things.

Money:
Like any other business, we make money off of our website traffic and investments. Money helps us do things… so we try to acquire it sometimes.

Children’s education:
Every skill I learn can be taught to my kids, and other kids, or even adults. So it seems like a good idea to try to get some experience and knowledge to share in the first place!

The way I’m going about the stock market is very simple and easy, and I’m hoping to be able to start a custodial account someday for the kids to learn how it all works too.

You never know, maybe they’ll just figure it out and rule the world….

Change the world:
My entire existence is centered on forcing society to change for the better, but I don’t believe in doing it through politics.

I feel like entrepreneurs have a call-to-action of their own to answer, and that’s to help the people who are struggling.

These websites and case studies are just my job, they aren’t what matters to me at the end of the day.

We ALL need to try new things and share our experiences so we can work together more efficiently to create a better future.

Team work makes the dream work!

Investment strategy

As with any investing strategy, this one is changing over time.

We had started off by investing our capital into two ETFs, VTV and VYM.

Over time, I added SPHD, SCHH, and VEU to our portfolio, just for diversification purposes.

We are just dumping money into this portfolio every week and using it as a control group, basically, and then comparing the results to our emotional investing portfolio and a swing trading portfolio.

M1 Finance App

We are using the free robo-advisor M1 Finance as our brokerage. Click below for a review of their services, OR follow along and see if you like their app.

Summary of Week 1, Month 4

I’m starting to see the positive sides of passive investing this month.

Returns have been amazing, and I have to put literally zero effort into it since everything is done automatically for me.

 

passive investing month 4

Summary of Week 2, Month 4

Just continuing to invest my ~$25 each week and watching the portfolio grow.

There are minor ups and downs, but overall the value of everything just keeps going up, so that’s nice.

I’m looking forward to more dividends!

 

Summary of Week 3, Month 4

Just enjoying the money coming in…

Passive investing isn’t really all that spectacular.

There’s no 300% gains in a day, but at the same time, there’s no accounts getting bricked and dropping down to nothing.

Just slow and steady gains with the occasional dividend payments, but I’ll take it.

 

passive investing portfolio

Thoughts and reflections for moving forward

Due to financial constraints I’ve had to scale back on my investing projects, so this is the only one I have going now.

It’s unfortunate, but no-one said full-time blogging without a second job or a savings would be easy.

I’m just happy to be able to continue this! See you next week!