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April, 2025: 26
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| Investor's Journal is a diary focused strictly on investments and personal finance issues, primarily from a contrarian and retiree point of view. Follow along with an average guy's failures and successes as he learns, by trial and error, the fine art of value investing. |
4/26/25- Over the past few weeks, concerns about U.S. economic, rule of law, democratic governance, and security or defense-related circumstances have only increased as a result of chaotic, irrational policies from the executive branch in the District of Columbia. Am continuing to have a relatively conservative allocation of our liquid assets with roughly a third in reserves or money market funds. Have also added gold assets, now comprising about 8% of our portfolio. These efforts plus a significant holding of BRK/B shares have lowered our downside volatility.
Since the end of 2024, our total liquid assets (now $2,216,443) are down 1.89%, compared with a drop of 5.74% for the S&P 500 Index thus far in 2025.
The sum of all assets (including real estate) in our nest egg has fallen 1.47% since 12/31/24 and now stands at $2,777,176.
At this time I am partial to the following assets: AMR; BAC; BRK/B; CHTR; CMCSA; CNR; COF; DPZ; ELF; FTEC; HCC; MOAT; POOL; RING; SA; SCHD; SYF; TNK; VBR; and VRSN. (As always, I encourage others to do their own due diligence before investing in any equities.)
At some point over the next nearly four years - and possibly more than once - it seems reasonable to anticipate a substantial downturn in U.S. markets. It should not surprise us to see stocks lose at least 20% in market value, perhaps even, before the end of looming bear markets, 80-90%. All things considered, do not plan to respond with rebalancing of our holdings till equities have fallen in excess of 20% and even then to retain substantial amounts of reserves. On the other hand, surprises on the upside will be used as opportunities for selling weaker assets and increasing shares in money market funds.
Disclaimer and Disclosure Statement
Neither I nor Investor's Journal will be responsible for losses by anyone who obtained ideas from this site.
This diary is intended for personal interest and general information only. You are advised to do your own research (as well as to consult highly compensated professionals) before spending money on anything.
I know of no reason anyone should take my financial musings seriously. At best I am a dedicated amateur providing a bit of investment-related insight and entertainment, at worst an amusing diversion.
My wife, Fran, and I may at times own shares of some of the assets mentioned here. But neither of us receive any benefit from reference to them, unless you count the mutual misery when we get it wrong, or the opportunity to gloat when we get it right.