Compound Collaboration, Month 18 & 19
Every month I put aside some money into a portfolio aimed at long-term bets over the next 20 years. I will be gifting this portfolio to my future kids someday. I hope to use these memos as an educational tool to teach them about the world. With any luck, managing the portfolio will become a shared activity to collaborate on as they grow up.

It is one of the main reasons why I invest.

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Performance from the first 16 months:
‌‌Month #1 Aug 2020: $ARKK -16%
Month #2 Sep 2020: $ARKG -22%
Month #3 Oct 2020: $BTC.X +265%
Month #4 Nov 2020: $BTC.X +132%
Month #5 Dec 2020: $NVDA +82%
Month #6 Jan 2021: $VT +8%
Month #7 Feb 2021: $PACB -61%
Month #8 Mar 2021: $TSM -3%
Month #9 Apr 2021: $KLIC +2%
Month #10 May 2021: $TTD +22%
Month #11 Jun 2021: $ETH.X +39%
Month #12 Jul 2021: $ETH.X +30%
Month #13 Aug 2021: $ROKU -62%
Month #14 Sept 2021: $ETH.X 0%
Month #15 Oct. 2021: $RBLX -32%
Month #16 Nov. 2021 $APPS -27%
Month #17 Dec. 2021 $VMEO -28%
Month #18 Jan. 2022 Cash 0%

Total portfolio return: 17%

In January I didn't make a buy— markets have fallen a ton and there isn't necessarily any mandate to buy a new stock every month. Roku and Pacific Biosciences have gotten torched; everything bought after September of last year is down 30%.

Addition for February: Opendoor $OPEN

My thoughts on Opendoor can be found here.

Opendoor is a very risky bet. They're extremely early in what they're trying to do. Over 20 years, this will likely be either a 0 or home-run.
Young Money Capital's avatar
Very cool! I like that idea!
Nathan Worden's avatar
@youngmoneycapital Thanks it's definitely turning into an interesting time capsule.
Sachiv's avatar
Question: why are some tickers green, and others red? Is that based on the most recent trading day’s change in price?
Nathan Worden's avatar
@passiveinvestor Yep! That's exactly it— whether the stock was up or down today.
Frank Patton's avatar
Planning question (not a trading one)

Do you use a brokerage account or some type of tax shelter to do this trading in for your kids?
Nathan Worden's avatar
@fpatton13 At the moment it's just in a brokerage, although I've considered a 529. I decided against the 529 because the purpose of this isn't for educational expenses. But I'd be open to hearing other better ways to manage this account. Priority is probably reducing taxes once the account is passed over.
Frank Patton's avatar
Well, just brainstorming… you could use tax deferral provided by an Roth maybe to shelter some gains if you are trading. If not, then brokerage in your kid’s name could be good too due to them having no income you could leverage that for preferential cap gains in the future.
Nathan Worden's avatar
@fpatton13 Yeah not trading at all— just making one buy a month and holding.

The other funny detail is that I don't have kids yet— probably won't for 3-5 years, so can't open a brokerage account in my kid's name yet— they don't have one! 😄
Frank Patton's avatar
@nathanworden 😂 that’s some serious planning ahead!
Nathan Worden's avatar
@fpatton13 My wife had the same reaction 😄



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