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Unicorn Portfolio Monthly Update

Feb. 29, 2024
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Wiko Steyn
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Wiko Steyn

#17 of 20 Stocks Added

 

Our Unicorn Portfolio is holding up relatively well considering the massive macro pressure currently experienced by most stocks, and we have no major news to report. We made one new addition to this portfolio and we have 3 more stock picks coming up. In this article, we are going to bust some common investing myths and feed you some controversial advice.


1. The Money Paradox.

You have to lose money in order to make money. Most successful investors have stories of the invaluable lessons learned from a terrible loss. Sometimes you have to pay to learn. Put skin in the game. Also, remember Warren Buffet's rules of investing: 

"Rule Number One: Never Lose Money. Rule Number Two: Never Forget Rule Number One" 

Now that's a reverse psychology paradox we have right there. If you are wondering? Yes, we just invented the term reverse pshycology paradox.  Obviously in the long run you don't want to lose money, but sometimes setbacks can gear you up for greater rewards in the future.


2. Picking individual stocks isn't for everyone.

95% of people lack the temperament to be good investors. If seeing your net worth get eroded by 30% or more scares you, then this game is not built for you.

 

3. Study great investors but never copy them.

Why? You'll never be like them so please stop trying. You have your own genes, knowledge, surroundings, and starting point in history. Investor-portfolio fit is an underappreciated concept, make sure your portfolio suits your unique personality. Our five portfolios are example portfolios and you should never copy them directly. Rather use them for ideas and inspiration.


4. Gut instinct is more important than most people care to admit.

Your gut influences your subconscious and therefore permeates not just your final decision but every step along the way - where to look, what content to consume, who to listen to, what questions to ask, when to wait and when to act. You will always struggle to overthrow your gut and this will lead to a lack of conviction.

 

5. Diversification isn't for idiots.

People who diversify are those who acknowledge that they don't know what the future holds. It's healthy to have self-doubt. The real idiot is the one who goes all in purely because you have built conviction by deep diving into a company. Some black swan or unexpected invent can destroy any company.


6. Concentration isn't an action, it's an outcome.

Concentration is mostly a result of letting your winners run. It's an outcome that manifests from the outperformance of certain stocks. It is not a naive action you take from day one, based purely on your own blind faith or ignorance. This is why we start with the same capital allocation for each stock in our respective portfolios.

 

7. Know the Market Cap of a company, not its stock price.

Most investors do the opposite even though market caps give you perspective and stock prices tell you nothing.

 

8. You can be a good fundamental investor and still lose money

Making money in stocks is 90% emotional mastery, and only 10% intellect. You have to master your own psychology first.


 

Portfolio Updates Summary

Our latest addition to our Unicorn Portfolio is a bit of story stock and right now Wall Street ain't buying it, but we believe the future of Spotify shines bright. We will do a deep dive into this audio streaming giant in our next article.

  • Buy $250 SPOT at $102.44



 

Disclosure

This is not financial advice and is only based on the author's opinion. This is not buy or sell recommendations of any stock.  The $10K is not real money and only a demonstration of a typical portfolio. The Unicorn Portfolio is a high-risk portfolio and should always remain a small allocation of your overall assets. This is an actively managed portfolio where we will buy and sell positions as we deem fit without any regard for taxation. Remember, all selling of stocks triggers a tax event in most countries and it is the investors personal responsibility to always remain tax compliant.


 


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