Setting Up A Dream Investment Portfolio with over 50% Returns
The Neighborhood Finance Guy writes about financial literacy topics: Financial Planning, Budgeting, Millennial Money Management, Investment Strategies, achieving the dream, and more. The goal is to help you make effective decisions and set S.M.A.R.T goals with your money. The information is free but the struggle is not sold separately. And, if you are into this sort of thing; the blog is PLUTUS nominated, I studied Accounting with a Specialization in Taxation, served in the US Marine Corps, and now work as an Auditor. I’m also big on Traveling and watching Anime.
Table of Contents
So What’s So Promising about this Dream Team Portfolio?
Based on news reports, the metaverse economy could generate up to $30 Trillion within the next decade. By 2025, experts are projecting $75 Billion in growth. As more people are forced to work from home, the metaverse will offer alternate digital realities where people work, play, and socialize.
So what supports this dream scenario, is this stock mix. The idea is that most people will be spending time at home and retail shopping will be following suit. It wasn’t too long ago that grocery delivery was almost Science fiction, circa 2019, now it’s a robust gig economy.
The world is changing. Your investments might need to change with it.
Before you invest in the Dream, here are some ground rules…
If you need financial or investment assistance, I would recommend that you refer to a fee-online financial advisor who has a fiduciary responsibility to their clients. Since investments can trigger taxes, you might want to refer to a Certified public accountant as well. And if you don’t have a lot of money, just start with a financial plan.
No need to play with your wealth, especially since too many Americans are retiring broke. No matter where investments go, the fundamentals hold true. You really need to know how to fish, forage, farm, or hunt for your food. And, you really need to own your own home.
Setting the Dream Team Investment Trend
As always, I’ll recreate a portfolio based on what was discussed in the news reports using M1 Finance’s create a pie feature.
From that point, we get to play with what I think a good mix looks like, and voila!
This pie is a snapshot as of early November 12, 2021 (see Graphics #3).
Keep in mind that the one-year return for the S&P was 29.11%.
Either way, this is still better than 0.01% in a savings account getting shredded by inflation north of +4% this year.
So What’s the Breakdown of this Dream Team’s Portfolio Tracker?
The TNFG Dream Team Tracker (see table #1) is a 3-part portfolio with growth, value, and dividend options. The goal of this mix is to buy into growth, sales, and daily spending patterns.
Table 1. TNFG’s Dream Tracker Holdings and 1-yr Averages
| Company | Market Cap | Dividend Yield (if Any) | *Market Growth For the Last 12-Months | *Current Price Per Share | Avg Target Price | *M1 Slice Weight |
| Tesla $TSLA | 1.0T | 0.00% | 152.98% | $1,013.39 | $820.04 | 20% |
| Amazon $AMZN | 1.8T | 0.00% | 13.34% | $3,525.15 | $4,158.21 | 10% |
| Apple inc. $AAPL | 2.5T | 0.58% | 26.54% | $150.00 | $169.65 | 10% |
| CVS $CVS | 124.1B | 2.11% | 35.78% | $93.49 | $104.47 | 10% |
| Johnson & Johnson $JNJ | 434.4B | 2.49% | 12.90% | $163.52 | $189.75 | 10% |
| Nvidia $NVDA | 757.3B | 0.05% | 128.79% | $303.90 | $261.08 | 10% |
| Procter & Gamble Co. $PG | 354.7B | 2.30% | 4.13% | $147.40 | $149.53 | 10% |
| Sea Ltd $SE | 149.0B | 0.00% | 88.10% | $343.02 | $395.84 | 10% |
| Best Buy Co. Inc. $BBY | 33.4B | 1.94% | 21.57% | $132.36 | $129.54 | 5% |
| Home Depot, Inc. $HD | 393.3B | 1.72% | 37.43% | $371.08 | $354.43 | 5% |
| Avg | 0.935% | 62.31% |
Dream Team’s Top Ten Hit Almost 600% in the last 5 Years!
After plugging in the numbers in M1, we can see this Dream Team portfolio has been making waves. (see graphics #3). Over 62.31% rate of return on your investment for the last 12 months and over 600% for the last 5 years. That’s an impossible 120% average.
I wish I picked this Dream Team in 2017. The opportunity to invest requires that you set SMART+ER goals and dollar cost averages your way into success.
If you want to follow this pie, click here. It’s a link to my M1 pie. This is yet another reason why I love investing with M1 since we can easily share these portfolios to each other.
If you want the $30-for-30 referral, click here.
Top Five Dream Team Holdings and How they are Tracking
EV Leader
Tesla’s mission is to accelerate the world’s transition to sustainable energy. Since its founding in 2003, Tesla has broken new barriers in developing high-performance automobiles that are not only the world’s best and highest-selling pure electric vehicles—with long range and absolutely no tailpipe emissions—but also the safest, highest-rated cars on the road in the world. 5-yr growth 2,747.67%.
Delivery and Access
Amazon is guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking. Customer reviews, 1-Click shopping, personalized recommendations, Prime, Fulfillment by Amazon, AWS, Kindle Direct Publishing, Kindle, Fire tablets, Fire TV, Amazon Echo, and Alexa are some of the products and services pioneered by Amazon. 5-yr growth 390.24%.
Powering Communication
Apple Inc. is an American multinational technology company that designs, develops, and sells consumer electronics, computer software, and online services. It is considered one of the Big Five companies in the U.S. information technology industry, along with Amazon, Google, Microsoft, and Facebook. 5-yr growth 502.96%.
Healthcare Leader
CVS Health is a diversified health services company united around a common purpose of helping people on their path to better health. In an increasingly connected and digital world, it is meeting people wherever they are and changing health care to meet their needs. 5-yr growth 42.83%.
Household Staples
At Johnson & Johnson, we believe good health is the foundation of vibrant lives, thriving communities, and forward progress. That’s why for more than 130 years, we have aimed to keep people well at every age and every stage of life. Today, as the world’s largest and most broadly-based healthcare company, we are committed to using our reach and size for good. We strive to improve access and affordability, create healthier communities, and put a healthy mind, body, and environment within reach of everyone, everywhere. 5-yr growth 61.53%.
Final Thoughts
As price inflation and income stagnation hit record highs, investing your money is the only way to go. The bottom 70% of the US is supporting the economy through spending. The top 30% are injecting money through investment and getting better returns.
One segment is losing and the other segment is gaining speed.
Turns out 2040 will be way more expensive than 2020. In order for the average person to keep their current $60,000 annual expenses lifestyle, they will have to up the levels to about $100,000. If you are feeling the pinch now, just know it will not be easier later.
Invest to hit your millennial millionaire mark, it’s less heavy lifting than you think. I dished out my Million+retirement strategies all the time. Feel free to read up on it.
Other great write-ups include:
- How to Build a 5-yr Portfolio w/over 500% growth potential,
- US Congress members invest their money to make millions, and even
- How to FIRE up your post-presidential election investment portfolio.
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