Update ETF Portfolio March 2024
Hi Partner 👋
I’m Pieter and welcome to a 🔒 subscriber-only edition 🔒 of Compounding Quality.
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One of my best friends, let’s name him James, has been investing for two decades.
That’s beautiful. Investing is the best way to create wealth for you and your family.
But do you want to hear something funny?
Twenty years ago, my friend and his wife Jessica did a little experiment.
They both invested $100,000 and the person who achieved the lowest return after 20 years should pay for a luxury trip to the Dominican Republic for 10 days.
My friend James tried everything over this period. For a while he invested in deep value stocks, dividend stocks, growth stocks, different option strategies, … you name it.
His wife Jessica didn’t like to spend time on her investments and she decided to keep it simple. She just bought the S&P 500 and never made any changes.
The result of their little contest after 20 years?
James: $403,000
Jessica: $689,000
That’s a difference of $286,000. With that money, they could go to the Dominican Republic every year for the rest of their lives!
Jessica compounded at 9.7% per year, the average of the S&P 500 over the past 20 years, while James managed to compound at ‘only’ 7% per year because he made things too complex.
The key lesson here? Investing passively in ETFs can make a lot of sense.
Jessica still teases James with the fact that she made more money than him while she didn’t spend any time on her investments.
ETF Portfolio
Investing in ETFs is very easy.
It’s the easiest way to create wealth for you and your family.
You don’t need to spend a lot of time on your investments and you aren’t charged the high fees banks charge you.
Currently, our ETF Portfolio is invested in 5 high-quality ETFs we truly believe in.
The average ETF is up 11% since we first bought it.
Let’s give you an update and add to one of our positions.
