the know-nothing investor

It has been a while since I last posted, but I’m not broke or even worse…dead. So it’s always immensely enjoyable to be back again. Although I’ve been feeling a little blues about writing and investing, I will always return to an old place that I love.

When you do something with immense passion is normal, sometimes, to feel bored about it. In last years investing has become a great part of who I am. I like it so much, that I have finally figured it out what profession I want to embrace when I grow up. Sadly, this enlightenment came with a 20 years delay. Nevertheless, I can do it as my primary hobby and it only took some saving and a lots of reading.

And modesty aside I’m doing it like a pro, at least doing like a pro for the goals that I’ve designed my multi-assets portfolio for. These have been my return after-taxes for the last four years:

Those numbers are a little different from here, mainly because I finally had time to do some math about IRS double taxation from Portugal and US. Apparently due to US-Portugal Tax Treaty agreement I only have to pay a maximum of 28% over dividends. Which is pretty nice and much more fair in fiscal terms. This year I’m flat because of EUR/USD pair’s evolution, but we still have a couple of months to see how it ends. 

So why am I bored? Basically, because I can. I have the privilege of not overlooking my account for weeks, because after that lapse of time everything will be pretty the same or at least it will require minor adjustments.

In this kind of investment is good to be bored. It means you’re doing it the right way. It doesn’t come with excitement and adrenaline pumping emotion as in day-trading but it comes with a fair return rate and you will also keep your mental and physical wealth. It’s a win-win situation but you will become bored and I will not have lots to write about. And that’s why I’ve enormous hiatus in my blog posts. I’m richier but bored.

Few posts over time means scarce readers. Posts like this one,about being bored, or the qualities of being average will make me lose those readers. But as I learnt from Barry  Ritholtz (here) I primarily write for me. It transforms my abstract thinking into concrete ideas, which can be revisited now and then without normal mood swing bias. With this I improve my decision-making capabilities and my angsts are soothed in times of doubt. In the process if I can help common people, like me, learning anything about investing that will not be an average achievement but a great one.