Summary

The author outlines their conservative, long-term investment strategy for 2022, focusing on diversified asset classes including ETFs, individual stocks, cryptocurrency, and cash, with an emphasis on steady growth and risk management.

Abstract

In the article, the author details their investment portfolio and strategy for 2022, emphasizing a philosophy of slow, steady growth with a low-risk profile and a long-term horizon of 20+ years. The portfolio comprises four asset classes: ETFs, individual stocks, cryptocurrency, and cash, with a significant portion allocated to passive investments. The author plans to continue investing in ETFs using dollar-cost averaging, particularly in IUSE and ARKW funds. For individual stocks, they are cautious due to perceived market overvaluation but remain open to buying if prices meet their targets. In cryptocurrency, the author is bullish on ETH and considers adding BTC and SOL, while maintaining a disdain for "shitcoins." Cash reserves are kept for opportunistic buying. The author's approach is guided by the belief in the intrinsic value of assets and a rejection of the "get rich quick" mentality.

Opinions

The author values peace of mind and long-term growth over high-risk, high-reward strategies.
They are critical of the "get rich quick" mindset, viewing it as potentially harmful and leading to financial loss.
The author prefers assets they understand well and believes in their future value.
They endorse the investment wisdom of Ben Graham, advocating for consistent, informed investing rather than speculation.
In the crypto space, the author is optimistic about the potential of blockchain technology and the transition to Web3, particularly favoring Ethereum.
The author actively manages their individual stock holdings based on personal price targets and market conditions.
They maintain a diversified portfolio to mitigate risk and ensure stability over time.
The author is prepared to adapt their investment strategy in response to changing market circumstances.

My portfolio & investing plan for 2022

In this article, I present my investing plan for 2022, alongside my exact portfolio. My investing philosophy in general entails slow and steady growth. I preserve a low-risk profile and my overall investing horizon is 20+ years. As such, I invest only in assets that I understand and I believe they will bring me more value in the future.

I hate the “get rich quick” philosophy because I believe that it causes people to be opportunistic and miserable. Apart from that, I‘ve seen people losing money instead of making millions when they tried to do it in a day. Before we begin, a quote by Ben Graham: “The individual investor should act consistently as an investor and not as a speculator.”

Disclaimer: This article is no financial advice of any kind.

Asset classes & Current portfolio:

I maintain 4 different asset classes in my portfolio:

ETFs
Individual Stocks
Cryptocurrency
Cash

ETFs (Investing horizon: 25+ years)

I invest in ETFs because I get the chance to put money away and forget it. I contribute to this investment using Dollar Cost Averaging. This is a great way to enjoy peace of mind.

I basically own 2 ETFS:

IUSE by Ishares. This ETF follows the S&P500 and it uses an accumulating approach when it comes to income distribution. The management fee is 0.2%.
ARKW by Ark-Funds. This is an ETF by the company of Cathie Wood’s. It includes companies that are expected to benefit from shifting the bases of technology infrastructure to the cloud and the usage of new payment methods, big data, the internet of things, and social distribution and media. The management fee is 0.83%.

Individual Stocks (Investing horizon: 15+ years)

I also maintain some individual stocks. I love reading financial statements and I mainly invest in stocks that I think are cheap and have a competitive advantage in the market. The list of stocks I own is versatile. I manage the stocks actively and I trigger buy/sell orders depending on the price-targets that I personally put.

Currently, I own 2 stocks:

PYPL (PayPal), with -35% all-time loss.
V (Visa), with 10% all-time profit.

Cryptocurrency (Investing horizon: 10+ years)

Well, that’s the easy part. I love DeFi and I believe in the transition to the Web3. I expect blockchain technology to rise and be adopted by more and more companies in the next years. However, I hate shitcoins. Therefore, no surprise here, but I only own 1 crypto.

I only own ETH. I want to clarify that it’s not the only crypto coin in which I believe, but I think that ETH is the best cryptocurrency, on the best blockchain (the Ethereum).

At the same time, I own some NFTs. There is no need to mention some of them here, as they don’t occupy a large portion of my portfolio.

Current allocation

A picture is worth 1000 words.

One thing to notice is that I hold 10% of cash and ~75% of my portfolio is passive. As I said, I don’t want to get headaches about investing.

Investing plan for 2022:

When it comes to making decisions concerning investments, there are 3 options: buy, sell or hold. For cash, there are two options: deposit or withdraw.

Let’s talk about each asset class separately:

ETFs (decision for 2022: buy) I plan to keep on putting money using DCA. I will put 80% percent in IUSE and 20% in ARKW.

Individual Stocks (decision for 2022: hold / buy) The decisions on individual stocks are quite tricky. I believe that most stocks are overvalued at the moment and that we will see a correction in 2022. Of course, I may be wrong, but I will keep an eye on the market and make decisions later. I will not sell any stocks I own. I will buy more into PYPL or V, if they drop to my buy-in price target. Finally, if I find any opportunity that is worth it, I will buy.

Crypto (decision for 2022: buy) I will buy more ETH in 2022. I plan to buy ETH consistently every month using DCA. I also consider buying BTC and SOL. However, I have not decided about it yet.

Cash (decision for 2022: deposit) I will be putting more money in order to buy ETFs and crypto. As I said, there is a chance of buying stocks, but I will decide it on the go.

Conclusion

I am an investor who seeks peace of mind. I can’t let myself bother trying to make 25% return per year, when I can make 10% being safe and sound.

In 2022, I will sell nothing, I will buy ETFs and crypto and I will hold on my individual stocks, except if a great opportunity appears.

I plan to post the same article one year later and I am sure that my plan may differ, depending on the circumstances.