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The market itself has not preformed very well this year. The S&P 500 is down around 18% year to date right now. With 2023 approaching, many companies are predicting another tough year. At the beginning of 2022, I stated that I thought that this year would be a down year for the market as a whole, but I ended up being way more right than I thought that I would be. I have no idea how 2023 is going to go, and I don't know how anyone could possibly know. Perhaps the stock market has already bottomed or maybe it still has a bit more to fall. I have no idea. I do know that I will be buying stocks. Here is my current investment strategy.
1. The S&P 500 itself
90% of investors underperform the S&P over a long period of time. With this in mind, I like to invest most of my money into the S&P 500 ETF VOO. There's a lot of S&P 500 ETFs out there, but I like to invest in VOO because of its low expense ratio. I plan for my money to be in this ETF for a long time, so I want a very cheap expense ratio. VOO makes up my entire Roth IRA, and I even invest in VOO in my regular investment account as well. VOO, on average, goes up around 10% per year, and I believe that it will continue to do so.
2. Robo Investors
I really like robo investors, and I believe that everyone should have one. I use the app Acorns as my robo investor. With Acorns, they manage my money for me. They invest it into a collection of ETFs (exchange traded funds). My goal with Acorns, is to have a passive investment platform that I do not touch ever. I have an automatic buy order set up with Acorns where every single week a certain amount of money automatically gets invested into my account which they then invest for me. I never open Acorns. I just have that money passively growing my net worth. My goal with my robo investor is to have a benchmark that my personal investments can look at as a goal to outperform. If you would like to join acorns, they'll give you $5 for free by creating an account through my link - www.acorns.com/invite/LXHSGB
3. Individual stocks
With the market in a downturn, I have put a lot more work into finding what a business is actually worth in my own opinion. When I look at a company like Meta, for instance, I try to look at the revenue and profit that they are achieving and find what I believe the business is actually worth. If it's worth more to me than what it is trading at, then I buy the stock. This year, I have found a few companies trading below what I believe is fair value, so I invested in those companies. Time will tell if I am right, but I am a big believer in the companies that I am in. I plan to increase my holdings in the companies that I am already in, and I hope to find more companies that I can build a position in.
4. Private companies
My main goal is to turn CWT into an investment company. I want to invest into private businesses that will either get acquired by another company, go public on the stock exchange, or make enough profit for me to make more money than I invested. On this article, one likely sees ads. The revenue that I can bring in from these ads, I hope, will provide me with money that I can place into businesses. That is my main investment goal.
This is my current plan to build wealth.
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