What do I invest in?
It is all well and good that I share my progress towards FIRE but it is also important that I am as transparent as possible. Therefore, in today’s post, I am going to give you a breakdown of my investments as they currently stand. Hopefully it will give you some perspective and insight such that you can compare with your own investments.
My investment style
As an investor, I predominantly focus on accumulating a mix of passive index funds and high growth active funds. I like the high diversification that passive index funds provide but also like some exposure to high growth stocks which I think have the potential to provide the best long term returns in the market - although I realise this comes with a risk (as we have seen this year).
Due to the current economic uncertainty and the opportunity I think there is (due to the significant sell off in government bonds), I have also been accumulating government bonds. I believe that we are likely to have a further major drawdown in the next 12 months or so and that government bonds should perform well during that time.
I also hold a small amount of crypto in my portfolio to gain exposure there and I do not tend to hold a significant amount of cash.
Breakdown of investment categories
I have pulled all of the data out of my investment platforms and summarised it in tabular and graphical format. You can see these below.
As you can see, the majority of my portfolio is invested in passive index funds (39.5%). My house equity also makes up a big percentage (23.1%) with active funds (14.8%) taking third spot. I have reduced the amount I invest in individual stocks but I still have a large holding due to my company’s share scheme. There are attractive incentives as part of my company’s share scheme so I have decided to take advantage of those. Cash (0.6%) and crypto (2.5%) make up smaller parts of the portfolio.
Top investments breakdown
To give you a bit more of an insight, I have also broken down my top investments so that you can see exactly where the money is invested. Again, this is shown in tabular and graphical form.
As is probably not a surprise, my house equity (23.1%) is my biggest investment. I then have large positions in global equity trackers. My company share scheme shares (9.8%) take fourth spot with the active fund that I have most conviction with taking fifth spot (6%). Notably, my seventh and eighth largest investments are in US and UK government bonds. Pershing Square Holdings is Bill Ackman’s hedge fund - I have this as a strategic position within the portfolio in the expectation that it should perform well during times of uncertainty.
Conclusion
As you can see, my portfolio is quite diversified with significant allocation to passive index funds and funds in general. My company share scheme shares are my only significant allocation to individual stocks and my house equity makes up a big proportion of my overall portfolio. Having now spent some time reviewing my allocations, I am quite comfortable with my allocation to different investments and investment classes. During the foreseeable months, I plan to continue to add to similar investments. This year my ISA is with Vanguard so I will add to their funds first until I maximise my ISA allowance.
