Many people often ask me what type of stock-investor I am: a value investor, a growth investor, a dividend investor, a day-trader, an options trader, etc. And I think that the term 'compounder' defines me more than any of the descriptions above. My goal is to enhance the element of compound interest in my portfolio as best as I can. I do this in a variety of ways, but especially with monthly dividends that are reinvested, and daily dollar cost averaging into 'the compounding machine.' My goal is that on every single day, be it with a dividend that is reinvested, or a new addition into 'the machine' that money is inputted into the machine. My goal is also that on any given day money flows from the machine. Essentially, I want the machine to take in money every day and 'spit out' money every day. It's a fairly simple process in theory, but it takes tweaking to ensure that this happens within the portfolio.
In early January, I began creating funds with MOTIF that would be a strong part of my compounding machine. At the end of this post, I will share their return to date, and as expected, my two favorite funds: Balanced Alpha 3x Leverage and All Weather 3x Leverage have performed quite well. Presently, I am working on a website to showcase the results, but I also thought that I would share monthly updates here. It will be a fun and illuminating process, I think, to be able to go back in time to track the returns. Since I am often adding funds into the machine, I do not think that CAGR year in and year out will be most impressive. For example, the money added yesterday is unlikely to have a pronounced effect, and in point of fact, will drag down CAGR and Total Return in the short-term, but in the long-term enhance the elements of compound interest. And again, compound interest is the holy grail of investing for me, not just Total Return or CAGR.
May 31st Update
Money Inputted into 'The Maneos Compounding Machine' = $501,865
Present Value of 'The Maneos Compounding Machine' = $506,927.67
Total Return = 1%
CAGR = 1%
Monthly Income = $1257.76
Year-To-Date Income = $4335.04
Return To Date Of The Funds Created In Motif
All Weather Alpha 3x Leverage = 21.1%
Balanced Alpha 3x Leverage = 16.7%
Balanced China Alpha 3x Leverage = 14.3%
3 ETF Portfolio = 4.9%
The Monthly Dividend Fund = 3.3%
Super Alpha 3x Leverage = .1%
Wealth Inequality = -1.6%
Super High Yield Fund = -8.4%
See you at the end of June!
Disclosure: I am/we are long TQQQ.