Where's my money?
Hi all,
I am doing something different this week. I don’t have any new deals to share that I think are worth sharing at the moment (I have conversations daily, but I reject most). So I want to do two things:
Share how I track my portfolio construction and investments (feedback welcomed)
Discuss updates for the group, and solicit feedback where possible
My Portfolio:
I track my investments via Wealthfront. I’ve found this to be an easy way to keep everything in one place.
My overall net worth has taken a bit of a hit in the last ~3 months due to market conditions and being overly-concentrated in tech, so I took the lower end of the range and came up with this portfolio construction.
My Portfolio Construction:
Cash: 5%-16%*. Why the range? I have a tax bill coming up due to the sale of my business + an earnout payment due soon, of which I am going to keep in cash or something fairly liquid such as a credit fund for the time being. Currently, I am at 5% cash, which is the lowest I have been in years. Given I have always been a business owner, and a bootstrapped/conservative one, I tend to keep more cash on hand than most.
*for the purpose of this exercise, I am considering cash at 16%.
Stocks (including retirement accounts): 27%, of which 80% of that is in indexes, and the other 20% is spread across a few tech/telco/blue chip stocks ($CRM, $T/$VOD, $U, $CVS, $DIS, $PLTR & $SQSP)
Venture/Angel funds: 16%. I am invested across 3 funds — a traditional VC fund (Companyon Ventures, which is my largest commit), an Angel fund (Alex & Bart’s angel fund) & Shaan Puri’s rolling fund.
Individual Angel investments: Here’s my portfolio. I have about 21% of my invested across various startups, at various stages, with a concentration in B2B SaaS (and yes, I invested in Bolt before their CEO went crazy :). The fact that I have ~37% of my NW tied up in illiquid tech startups (including funds) is a reason to worry, but it is also a byproduct of paper markups which can skew the data.
Private, fully owned businesses: Currently I have just one, which is PlanetCompliance.com. That nets out to roughly ~6% of my holdings. If it goes according to plan, I think this could become an asset worth $1MM+ in the next 18 months. Time to execute.
Crypto: 6%. Pre-crash, I was hovering around 10-11%. Concentrated in BTC and ETH, with a few small bets on other coins. To date, I am not staking anything, but plan to stake and invest in Maple.
Real Estate (including REITs): 4%. This is way too low, and something I am actively looking to change. All investments are via funds/REITs.
Private Equity: 4%. I have made a few small investments in PE and plan to do more.
How am I going to increase my overall NW in the next 12 months:
Continue to invest across a more diversified portfolio allocation (less tech, more RE/SMB)
Continue growing PlanetCompliance.com and either cash flow, or sell in ~18 months
Restart some consulting to focus again on cash flow and re-invest across the portfolio more aggressively.
Create/share SPVs for attractive deals that we can participate in
Buy a small business (part of why I am looking to hold more cash). I want to buy a $500k-$1.5MM EBITDA business.
Feedback - Would you like to see a more specific breakdown, or my thesis on how and why I constructed my investments in this manner? More specifics around NW?
Social: We are working on scheduling our first dinner meet up in Scottsdale in April, with NYC up after that. I’ll share the ideas/format with you each, but feedback is welcome there too - overall, we are keeping it fun and casual.
Question: What has been your top performing investment in the past 12 months?
Next week, back to deals!