What's up guys, it's graham here, so let's be real, everyone always talks about their wins or how they knew and predicted that some obscure event was gon na happen in the future, but in a market like this, i think it's really important that we talk about our Losses because, as any investor will tell you it's a normal part of investing and throughout your lifetime, there will never be a scenario where you're always perpetually up year after year, and this is one of those times since the top of the market november of 2021. My stock encrypted portfolio has lost about 1.6 million dollars of profit falling about 20 from the peak, and even though there were some days that my account would fluctuate, plus or minus 300 000. It's evident that 2022 has been a rude wake-up call for a lot of investors, so in full transparency. Here's an update on my portfolio, the account value since my last video on november 24th, 2021, and what i'm doing from here on out since i believe these next few months could be a tremendous opportunity.

I also have to say a big shout out to biajesa for inspiring me to make this video a link to his down below in the description where he talks about losing five hundred thousand dollars throughout these last few months. And hopefully, this type of transparency gives you the assurance that losses like this are normal they're, not something to shy away from, and if anything, you can make a whole lot of money from it. If you play it right, but before we start, if you appreciate this kind of video or i break down my entire portfolio, it would mean the world to me if you subscribed or hit the like button for the youtube algorithm doing that helps up my channel tremendously And as a thank you, here's a picture of a really cute baby koala. So thank you guys so much and also big, thank you to public.com for sponsoring this video, but more on that later, all right! So in terms of stocks, i'm not exactly sure how i should best break this down, because i've been continually buying into index funds for over a decade now.

But i've never really invested a substantial amount of money into the stock market until march and april of 2020.. At the time i was sitting on a decent amount of cash waiting for a good real estate deal to come up, but when the economy, tanked and everything shut down, i saw this as a good time to deploy that money into stocks, which i felt were oversold And had the potential long term to go up back in value that consisted of about 50 percent of my portfolio, spread throughout a few dozen individual stocks and the other 50 percent spread throughout several index, funds that track the s p, 500, small cap and international markets Of course, i never would have expected the market to have recovered as fast as it did, but by and large the vast majority of my money kept going into buying the exact same index funds on a regular basis month after month. That's partially the reason why i rarely ever get portfolio updates. I just know a video about hey guys.

I just bought some more vt sacks again. It was the same thing as last time, but but more of it time in the market beats timing. The market that just means i've consistently been adding on to my core index fund positions through the ups and through the downs and varying amounts. Depending on how much money i make, and throughout the last year, i've been in a very fortunate position to have been able to invest more money this year than i was able to last year, raising my cost basis throughout my entire portfolio.

Of course, that also means that, with the s p 500 down seven percent year over year, every single position that i have made throughout the last year is down anywhere between six and eighteen percent. Just from the mere fact that i have dollar cost averaged on a regular basis, which is statistically what you're supposed to do, if you want to make the most amount of money long term, so in terms of my stock account today, let's talk now, like i mentioned Back in april of 2021, i broke down my largest accounts, including my biggest returns, my worst returns, my largest holdings and my riskiest holdings. So you could see exactly how i invest. This is meant to be a fun video to break down my non-index funds, although throughout the last year and a half, i've really done not much else other than accumulate more index funds and moving some of those individual positions into buying yeah more index funds.

Then, in november of 2021, which just so happens by luck to be about the top of the market, i made a video about selling my losing positions to offset the taxable gains of my profitable positions, known as tax loss harvesting. This basically means that a ten thousand dollar loss wipes out a ten thousand dollar gain, allowing me to remove myself from various positions without paying any tax on that profit whatsoever. At the time i cashed out of about half of my portfolio of individual stocks and moved it all over to an index fund that covers small, medium and large cap stocks in the us. In hindsight, even though i certainly lost money on those index fund purchases, i would have lost a lot more money.

Had i kept those individual stocks as normal and throughout the entire process. I came to the realization that i hate investing in individual stocks, even though it was certainly fun throughout the pandemic, and i made sure to still invest the bulk of my money throughout well-diversified index funds. I couldn't stand watching. One stock fluctuate in price over the other, with a nagging sensation to keep an eye on prices that probably would have been better off had.

I just started investing in index funds from the very beginning right now, i'm currently holding on to just over a dozen individual stocks that i'm willing to take a risk on because they make up a small part of my overall account. But by and large the more money i make and the more money i invest, the more i value the peace of mind that comes with buying one fund that covers everything and then being done now. Yes, that index fund is down about 20 from the peak, and everything that i bought over the last year is at a marginal loss. But surprisingly, my international etf is holding up the best only down 12 this year, so basically when it comes to stocks.

Yes, i am down about one and a half million dollars from the peak, but i'm not changing a single thing. I'm using this as an opportunity to lower my tax basis, rebalance my portfolio to a few core positions and that's it rise or fall. This is a part of investing and in the grand scheme of things, it's nothing to be worried about. However, as i say that we do have to talk about my real estate holdings, because this is where things get interesting, although before we cover that listen, i know how much it hurts to watch your portfolio drop in value and see a year's worth of profits wiped Away in a matter of weeks, but if you're a long-term investor, these declines could be seen as a potential opportunity, and that is where a sponsor public.com comes in.

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Let me know what free stock you get now with. That said, let's get back to the video all right now in terms of my real estate. As some of you know, i've been investing since 2011 when i began purchasing rental properties throughout san bernardino county from there. I slowly expanded throughout the mid-city of los angeles and i currently own eight one to three unit buildings fully rented out with a market value anywhere between 9 and 10 million, depending on the demand.

Now, of course, i keep a close eye on the real estate market since, by and large, it's still my biggest investment, and i see what's happening every single day throughout housing values, rising interest rates have absolutely thrown a wrench in the ever-appreciating housing market. That, frankly, was unsustainable to begin with, there is no way that housing prices could continue on the trajectory of increasing 20 year-over-year without eventually slowing down, and that is what we're beginning to see. Even though inventory is beginning to increase, housing, values are still going up, albeit at a slower pace, suggesting that most likely, the largest price increases, are behind us and will begin to enter a time of somewhat normalcy. In terms of my own holdings, though, i'm happy to say that they've all held up tremendously well and my only unexpected event was filling a last minute vacancy from a tenant who decided to move out of state.

Besides that, my real estate philosophy from the very beginning has always been buy a good deal with the intention of holding onto it forever and when i have such a low property tax basis, combined with insanely low mortgage rates. There's very little incentive for me to sell. So, overall fluctuating real estate values are not going to have any impact on this part of my portfolio and, if anything, i'll continue to go and buy good deals. If and when they come up.

For example, i partnered with ryan pineda to buy a 44 unit building in phoenix arizona with strong demand and a good location on top of that, there's also value to add in terms of improving the property, adding additional features and otherwise just making it better. So these are the types of deals that i'm diversifying into, alongside with everything else and by the way, if you're, an accredited investor - and you want to partner, alongside with us i'll link to all the information into the application down below in the description. That's why i believe that, at the end of the day, if your goal is to buy an undervalued property that you could fix up as a long-term rental, then any month-to-month fluctuations in price are really not going to make that big of a difference. And that is why i'm just continuing to buy and hold as usual, of course beyond that, we also have an investment that i really don't talk much about, and that would be private equity spread across several startups in the fintech space.

This is where i invest and supply funding to a growing non-public company and i've taken a huge interest in this, because it involves the companies and the apps that i use on a daily basis. Now, unfortunately, i can't disclose exactly how much i have throughout each company, but i will say it does include the likes of yada bank, public, creative juice, two startup credit card companies and a few others that i can't mention quite yet. The total value of these investments is anywhere between two and five million dollars on paper and it's very difficult to calculate just how much the recent downturn has affected valuations. But i will say why combinator just issued a warning to startups that they'll have to prepare for the worst and i tend to agree.

Their advice was to stockpile reserves expected venture capital, will dry up understand the last two years were not indicative of a realistic market condition and realize that maybe, if you raise capital over these next 12 months, you're doing so at probably the worst possible time for myself. The majority of the companies that i've invested in are large enough to be able to run on their own, but i also acknowledge that private equity is extremely illiquid. Anything can happen and for my own calculations, i just mentally assume they're all going to be worth zero. That way, if anything better than that happens, it's great and if nothing else hey, i didn't expect it to begin with.

As far as my other alternative investments, their value is much harder to track. My ford gt, for example, was purchased in early 2021 for three hundred and six thousand dollars, and now comparable cars are selling at auction for over four hundred thousand dollars. My tesla roadster was another example where i sold out of some of my tesla shares at one thousand twenty eight dollars and then plunked the money down into this. It's still too early to tell how their values gon na hold up over the next five to ten years, but until that point i'm just going to enjoy it.

On the other hand, my bitcoin and ethereum portfolio has taken a rather substantial hit since their peak in november of 2021, and for the first time in a long time, i am below my cost basis in the low thirties on bitcoin and two thousand dollars on ethereum. However, all of this makes up less than eight percent of my entire portfolio and in the big picture, any fluctuations do not have any impact on my strategy, i'm simply buying and holding on a consistent basis and long term. I see this as a high risk. High reward opportunity with money that i can afford to lose, i'm also working to expand into the franchise business in a way that i believe, should do exceptionally well, even throughout a recession, and as long as everything goes according to plan, i should be able to make A video on this in the next two to three months, so, if you want to be a part of it, make sure to subscribe, so you don't miss that video on how this plays out.

That's why this year, my overall plan is to plan for the worst and continue to dollar cost average into the markets on a regular basis. I know that's the same advice i keep talking about in every single video and i sound like a broken record, but that's the truth and when you really get down to the fundamentals of investing it's boring, it's not exciting sure i did lose about one and a Half million dollars in profit and i'm down about 20 from the peak as the entire market's fallen, but it's not a reason to panic and if anything, it's a great opportunity to lower your cost basis, get a better deal and gain some really valuable. Investing experience. I think so many people became disillusioned that investing would be as simple as it was in 2020 and 2021 when everything was going up and records are being broken.

But the truth is those years were an anomaly. Historically, an s p 500 that returns anywhere from seven to eight percent a year is really really good, and i have a feeling we're going to return back to that average. So i hope this provides some context to my own investments and at the end of the day, not everything is always going to be going up. Just sit back continue to enjoy the ride and no matter what smash the like button and subscribe for the youtube algorithm.

So what that's it you guys? Thank you so much for watching also feel free to add me on instagram, and you could also get all the way up to a hundred dollars with the free crypto down below in the description when you sign up for ftx us using the code gram, you may, As well do that it's free crypto enjoy thank you so much for watching and until next time.