My main goal is to build a portfolio of $1,000,000 in 1500 days with no debt*, starting from 1/1/2013. Every month, I provide an update on my status. My goal for 2015 was to get my portfolio up to $874,353. Because we saw exceptional returns in 2013 and 2014, I have already accomplished this. Let’s have a look at September.
In July, my portfolio peaked at $1,070,000. And it’s been tanking ever since. I closed August out at $992,150 and September at $979,614. I couldn’t care less. To learn why, we must consult the brilliant Charlie Munger.
Munger had this to say about risk:
Risk to us is 1) the risk of permanent loss of capital, or 2) the risk of inadequate return.
Munger on volatility:
Volatility is an overworked concept. You shouldn’t be imprisoned by volatility.
And I completely agree. Munger’s two thoughts have one thing in common; they both speak to a long term mindset.
I care about exactly one thing and here it is. Ready?
Over the long term, I want my pile to be as big as possible.
Pretty simple, right?
I don’t care about where my investments will be in 3 months, 6 months, 1 year or even 5 years. I won’t access the majority of my investments for decades, so I care about the size of the money pile in 20 or 30 years from now. Drops of 1,000 points won’t mean much at all in a couple decades. I doubt I’ll even remember them.
One problem I see with investors is behaving too conservatively. If you’re young and concentrate on investments that preserve capital or favor income over growth, you may be sacrificing long term returns.
Seussian Stock Market
Just for you today, I wrote a Dr. Seuss-like poem to better express my thoughts:
I don’t care about market farts,
I don’t care about charts.
I ignore market blips,
I ignore hot stock tips.
I don’t have a fit,
When the markets flip.
In your head, please do file,
That I’m a simple guy, not into style,
Fancy cars and $100 jeans don’t make me smile.
With a smirk on my face and a helping of guile,
I’ll tell you what I care about most, by a country mile,
It’s that in the end, I have a very large pile.
I’ll bet you didn’t see that one coming, did you? Please stick around, I promise I won’t write anything like that again for at least another week.
Here are the numbers as of 9/30/2015:
- Days elapsed: 272
- Days remaining: 93
- 2015 gains: –$7,737 (this would be much worse if it weren’t for the 401k contributions)
- 2015 401k contributions: $36,925
- Left to go (2015 only): Goal accomplished!
Since the start (1/1/2013)
- Days elapsed: 1002
- Days remaining: 498
- Gains since 1/1/2013: $393,571
- Needed for $1,000,000 (investments and cash only): $20,386
- Needed to retire ($1,120,000 in investments): $140,386
- Net worth***: $1,229,614
And we’re 2/3 done!
Did you notice my day count? As of 9/30, I’m at day 1002 out of 1500! Where has the time gone? If anything is a wake up call to get on with my life, it’s numbers like this. This sounds cliché and trite, but it really does seem like January of 2013 was weeks ago, not close to three years.
Now, I’ve had about 1,200,000 views and the journey has been incredible. I’m not the same person I was when I started. I’ve met some great friends and learned so much.
You’ve all helped me along too and you have no idea how much I appreciate that. Well, except for Mr. Potty Mouth Troll who told me to go <redacted> (Troll, I hope you’ve sought help. Hate mail doesn’t tweak me, it just makes me feel sorry for you.)
Life is great. Thanks everyone!
*I still owe something like $120,000 on my mortgage. Because I have a low rate, I firmly believe in not paying it off. My compromise is to have enough money put away to pay off the mortgage at time of retirement. So, to retire today, I would need about $1,120,000.
**This is an affiliate link. If you sign up, the blog makes a little bit of money. Personal Capital is a totally free and superior way to keep watch over your investments. It’s worth it for the fee analyzer alone. I would never recommend anything that I don’t personally use and completely believe in, so give it a try. If you’ve already signed up through the link, please know that I am thankful and absolutely think the world of you. When you stop by for a visit, I’ll let you try out my sweet new skateboard and you can even have a zipline ride (coming summer 2016).
***The numbers on the right side of the page only reflect my investments and cash. Net worth includes, but is not limited to:
- Home equity
Skateboard! Some dudes go out and buy a Corvette or motorcycle to assuage their midlife crisis. I went on Amazon and bought this crappy skateboard for $60. The neighbors already think I’m crazy. Seeing a 41 year old dude cruising down the street on this thing will help cement their opinions.
Life is wonderful when you truly don’t care what people think.
It’s liberating and amazing.
Join the 10s who have signed up already!
Subscribing will improve your life in incredible ways*.
*Only if your life is pretty bad to begin with.