My Investment Strategy

"You would be better off if you got a punch card with 20 punches on it-and every financial decision you made you used up a punch. You would think a long time before every investment decision. You would make good ones and you'd make big ones."
- Warren Buffett

This quote has deeply informed my investing strategy and thus, altered the trajectory of my life. My investing strategy does not involve diversifying for its own sake, it comes naturally as I discover different opportunities. Currently 97+% of my portfolio consists of one stock: TSLA. After thousands of hours of research and deep thought, I have come to be extremely comfortable with this position but I know that I won't be all-in forever. I am excited to invest in differnt things, maybe of a more stable nature, however I am keenly focused on building out this first major investment. I think over my lifetime I will probably only make between 3 and 6 major investments (anything $10,000 or more).

I think of investing like baking: you make the mix then leave it to bake. I want to build my first position to a size where if it were to 10x, I'd be able to retire. This number is probably around $250,000 for me (pre-10x). I want to reach this before moving into any other major investment. This is a laser focused approach, I don't intend on having to track a portfolio of 25 stocks just to maybe achieve better results than the S&P500. Before I make a large investment, I lie in the grass and wait to pounce, when I pounce, I pounce big. I spend time mixing the batter (growing the position) then I put it in the oven where it can grow into something beautiful (I don't touch it for a long time).

I am still mixing my first cake and I am not too far from achieving my minimum investment goal. At this stage, I think my next investment will be VAS:ASX, something worry free I can add to whilst receiving dividends. When Tesla is over 10x my average purchase price, I don't think I can be bothered looking for another unicorn like that, they are just far too difficult to find. I don't want to do the research nor the thinking required to do it again. I would also run the risk of getting it wrong. I don't think I'm wrong about Tesla but if I do it again, there is a real risk of thinking I am actually good at stock analysis based on my track record. I am not. I just really understand Tesla.

If you have one, I'd be keen to hear your investment strategy. Email me :)