How I made 56% return in 9 months (revised)

(I edited the language on this post, the original is still up just in case, thanks to my PA (SAM). remember my first language is not english. ✌)

On 19^th September 2019, I was interviewed for YFS Magazine. In that interview, I predicted the end of the 13-year bull market.

This insight drove me to prove that it’s possible to achieve over 50% returns using the Buffet Challenge. Growing up, Warren Buffett was a hero of mine (still is) – I studied his rise to fortune and his intense strategies. Now, I was going to try them.

To paraphrase Buffet, he said something like: “It’s a huge structural advantage to not have a lot of money to invest. I could make you 50% on $1million. I know I could.”

So, I wanted to test this theory and take up the 50% challenge. With $20,000, I made a 56% return in just 9 months. Imagine how that’ll keep building if an investor continue to focus in dark corners of the market

In fact, as I only invested for the challenge, I’m now sitting on the cash made and the account’s closed. I’ve proved it works – so you can do it, too. Id teach people for free how to do it on my podcast, but is a lot of work.

To prove that I managed to do this, I’ve included my real-time investments. You can see the growth for yourself. 

https://github.com/Neyt/Investment-account

Why does investing small make big returns?

You can choose smaller investments that could do better. With big budgets, you’re restricted to big investments – and huge risk. Small investments mean you’re agile, adaptable, and can move fast to invest in growth stocks.

Don’t throw your cash away, though. You need to look at the opportunities available and wait. Look for companies that no one is paying attention to. Watch them, study them, and focus. Keep your cash and keep your focus!

The only reason I was able to get these returns was through focus. I looked for dark companies and stocks that seemed quiet and uninteresting to most. Check out this interview with Dan Schum where we talk more about dark companies and why they’re a great opportunity. 

Here is the screenshot of the account I used for this challenge (exactly as mentioned in the interview I did 9 months ago - the account number is the same):

Rate of return on the last account overview: 56.91% Year to date:

Here you can see different benchmarks to compare since the inception:

SPXTR 14.14%

EFA 2.49%

VT 8.84%

ME 54.67%

Here is the benchmark comparison:

And this is the one that I like the best; 

These returns were achieved with less risk than the market:

But then… COVID-19 hit.

I had to change strategy.

Here’s the lesson: don’t box yourself in to being a ‘value investor’, a ‘trader’, or an ‘option-trader’ (check out the podcast to learn the differences!). Be agile: be a MAKE MONEY INVESTOR. Do what makes sense.

 

Connect with me. Neytorres.com

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