How to Build a 5-Yr Investment Portfolio with over 500% Growth

Opportunity comes once in a lifetime, and a few other times if you are paying attention. This is why you need to learn how to build an investment portfolio now, more than ever. Your goal is to invest for growth.

If the whole GameStop $GME run up in January 2021 and its ultimate crash taught us anything is that 1. Better should never chase the news, 2. Quick money is not without its risk. Investing in the market is always a risk; however, that risk decreases with time.

Table of Contents

All Great Investing Ideas Grow in 3s

From all my research over the past 5 years, structuring a portfolio boils down to three main ideas. Once you establish a great household money management structure, and are fully aware and invested for your retirement.

The play money that remains is fair game.

To play this game, you have to do more than save. Learn how to invest for growth and build a 5-yr portfolio that beats the average.

1. Investment Growth is all about Self-Control and Accountability

Primarily, you have to know your RISK PROFILE. This breaks down into your RISK APPETITE – willingness to take the risk, RISK CAPACITY – the ability to take risks i.e. age, income, etc., and finally, RISK TOLERANCE – the defined limits or boundaries for that risk i.e. downside of 15%.

Here’s an example of how you go about investing for the long term.

2. Fully Invested in long-term growth

Secondly, you have to establish (in my opinion) a monthly investment contribution goal since wealth is equal to Contributions x Time x Rate of Growth.

The more fuel you add to the fire i.e. contribution the more it burns. In addition, the more time you give it, the more likely it catches FIRE.

The more sustainable your rate of growth becomes the better you will be able to manage over time.

3. Making money work for you through your investment growth

Thirdly, understand your portfolio style. Consider the tax implications of your investment classes and the rules of the game you are able to play. Most people do not know that frequently trading for profit can lead to higher taxes.

There is no issue with making money, just remember to retain at least 20% of it for taxes. Understand what your Equity to Bond ratio means and how that affects your Efficiency frontier (refer to Personal Capital).

Finally, start periodically reviewing your allocations.

What you are looking for is your breakdown of Growth-Value-and Dividend paying stocks. Which is the entire breakdown of the over 150% portfolio that I am about to share.

This is all before Qualitative and Quantitative analysis. Yeah, that is a lot of stuff but no one said becoming rich was easy.

Disclaimer – Do your own research!

Like everything only, learn to do your own research and take this as just random advice. To be frank this is not my personal portfolio on M1 Finance if you want to see that one, check this link TNFG Starter Kit v3.

I do have some of the holding represented here but since my rick profile tells me that I am an aggressive but scared person, I have some growth and some dividends to hold me down. I do hold some random plays like $NIO and $PDD. 5-year progress under this portfolio is you invested early +633.94%. The 1-year review as of Feb 2020 is +243.79%.

If you are defensive overall or brand new to investing, you can start with this monthly dividend portfolio aka the “ZODIAC”.

Full write-up available here,

How to Invest in your first Generational Passive Income Portfolio for 2021

The Focus Point

While the 2009-2019 decade was relegated to all types of investments including stocks, Buying and Flipping, Air BnBs, MLM Scams, Brunches, Day parties, etc.; 2020-2025 will be the Investments and Side Hustle season.

Gone is the over-reliance on one singular 9-5 paycheck. That level of stability is gone. We are in a full reversion to the mean.

Dynamic Change Coming, Pivot East, or Crash

Now it is the time to lean in and fully adjust to the new normal. Saving accounts are in the full-on red with returns as high as 0.85% and as low as 0.01%.

Stashing cash equates to a colossal failure, in the end, check Bankrates.com for yourself.

As for me, I am betting big on the world pivoting from America as the head of the house to China. The growing middle class is no longer in the West so the money and opportunities will be flowing from other places.

US Domestic Investment Growth is Past Tense

The game has been US-centric but it is not going to matter much longer. 130% growth over 5 years is nice but over 500% is a bigger deal. Play with being average if you want with the advice floating on social media or learn to move beyond being average. See $VTI growth below

Seeking the Game Changer

Pick an anchor stock. This is the one you are willing to throw money at because you believe and know that the company has value. Singapore-based Sea Limited (NYSE: SE) is worth scooping up. Sea has three very different operating segments. The company has a digital entertainment division with the number of quarterly paying customers doubling to 65 million. This is a reason why we are seeing Google push Stadia and Amazon push Luna gaming platforms. There is money in micro-transactions.

Secondly, Sea’s online Shopee platform in Southeastern Asia has driven E-commerce revenue up 173%, with merchandise value up to $9.3 billion. In addition, South East Asia has a growing middle class while the west is aging.

SEA is positioning itself to be the Amazon of the East.

A New Juggernaut Looming

Sea Ltd ($SE) — past twelve-month growth 421.06%

In Focus: Other Game Changers Available

Industry Game changers are hard to spot but the returns are fantastic later on. That is the problem. We do not have a crystal ball to look into the future so we end up taking our best guess based on current qualitative and quantitative data. For example, NIO $NIO is an Electric Vehicle company in China. The reason that I think it will surpass $TSLA is that China pivots quicker than the US when it comes to modernization. There is less fuss and less lobbying.

Moreover, with billions of potential consumers, that is an easy assessment to make. Here are other potential game-changers:

Square ($SQ) for Finance – Past 12-month growth 193.84%
Palantir Technologies Inc. ($PLTR) for AI – 237.37%
Shopify ($SHOP) for Retail – 159.73%

Doubling Down on the Base

The list below is broken down by quarterly dividend payment dates. By owning these seasonal stocks, investors can anticipate payments every three months. As of 10.15.2020 –

The Growth Lineup

Amazon ($AMZN) — up 62.51%
Apple ($AAPL) — up 73.85% with a 0.59% dividend yield
TESLA ($TSLA) — up 379.11%

Value Added and Long-Term Performance

Best Buy ($BBY) – up 34.85% with a 1.92% dividend yield
CVS ($CVS) — up 10.95% with a 2.71% dividend yield
Dell Technologies Inc. ($DELL) — up 55.42%

Dividend-Centric Holds

Walmart ($WMT) – up 25.71% with a 1.51% dividend yield
Johnson & Johnson ($JNJ) — up 9.76% for the year, yielding 2.43%
Procter & Gamble ($PG) — up just 5.23% for the year, yielding 2.43%

To be clear, you can structure any of these segments with your favorite stocks. Consequently, tweaking it might actually increase your overall growth potential or dividend yield per quarter. Other honorable mentions in the dividend section (as of 2.5.21) include but aren’t limited to:

Chevron ($CVX) — yielding 5.67%
Exxon Mobil ($XOM) — yielding 6.97%
AT&T ($T) – yielding 7.01% but down -17.63% which squarely puts it in the must-buy cross hairs for dividend portfolio holders. Currently selling at $28.89 per share and was as high as $43 back in 2016.

Why Start ASAP?

The biggest reason, it pays more than the average bank savings at less than 1%.

For every $1,000 investment in the dividend zodiac portfolio ends up being $36.60+ per year for a lifetime. At $100,000 invested, that is $3,600+ per year for the rest of your life. At $1,000,000 after a lifetime of investing, that is $36,000.

How much would it take you to invest $1,000,000…?

Less time than you think. Compounding interest helps you fight your way upward and helps you sustain generational wealth for lifetimes to come.

If this Dream Team portfolio, you are looking at a possible 500% increase in the amount you invest from now until December 2025. Let us say you dropped $12,000 as of January 2020 which would translate to $48,000 profit.

If you made monthly contributions of $1,000 for 5 years at a 100% growth rate per year, the grand total ends us being over $500,000 of profit.

Calculations below, I rest my case.

Here is a copy of this portfolio, check it out on M1 Finance. In addition, if you want to start investing, I got the $30 for $30 referral link, right here.

If you like this portfolio, feel free to check out: