2024 wildly surpassed my expectations (and not only mine, I guess)
I started with CHF 0.97M in equities and will end the year with appr. CHF 1.2M (net investment during the year: just 4.3K).
Before describing my investment strategy for 2025, let’s check if I followed my strategy for 2024:
No selling, just buying!
Basically yes. Sold some VHVE and VDEM and increased CHSPI and SMMCHA to keep my home bias at around 25%. As of today, my ETF portfolio at IBKR consists of 4000 VWRD, 2000 VDEM, 1000 VHVE, 790 CHSPI and 250 SMMCHA.
Invest 75% of free cash flow in ETFs at the beginning of each quarter, save up the remaining 25% to increase liquidity.
More or less. I have my cash stack where I want it to be. Stopped investing more into stocks in summer, since I have reached my goal of 45% of Net Worth. Just reinvesting dividends now.
Keep my two Swiss ETFs at around 25% of equity portfolio (2/3 CHSPI and 1/3 SMMCHA). The other 75% are mainly VHVE and (a bit of) VDEM
Swiss ETFs are at 24.3% of the equity part of my portfolio (including ETF’s, options depot and pillar 3A)
Continue to trade options (doing the “wheel”) with a CHF 40,000 deposit.
Yes, but the wheel got stuck in the mud around end of October… more on this misfortune in my yearly update coming soon to My Option Odyssey: Personal Experiences, Numbers, and the Path Forward after Year One
So, and here is my strategy for 2025
- Keep the equity share above 45% of Net Worth.
- Not sure yet what to do if stocks keep climbing. Sell some ETF or let it climb?
- Stop injecting fresh money into IBKR (all dividends shall be used to buy CHSPI).
- Start investing (if drop below 45%) at DEGIRO, probably all into ACWI.
- Wait for the assigned stocks in the options depot to recover, then decide whether to continue ‘wheeling’ or to put everything into ACWI.