just sold $1.2 million in stocks... why paper hands...

one meet kevin here i just sold about

1.22 million dollars of stocks and i

wanted to explain why do i have big

paper hands did i just paper hand out of

the red market because well things went

down or what the heck happened here well

to understand my strategy it's helpful

to know a very simple

rule that i have it's a simple rule that

i follow and

it comes after one of my other favorite

rules which is don't have more than 20

margin which i'm right at like 23ish

percent margin right now so

i'm not doing this today to pay f margin

i'm okay being right at 23

so this is really the next rule and the

simple rule is this

when the market is super hot lower your

margin keep cash in

index funds or diversify into more

stocks

i personally when the market is super

hot like for example

august of last year when it was just

literally

it was insane august of last year i

instead of putting money into individual

stocks that we're really taking off

because i don't like following parabolic

curves

i put money into things like a basket of

index funds

which you could see by going to like

metkevin.com

basket you'll see i've got four index

funds there and i kind of split them up

into the way i want to diversify them

the really cool thing about august of

last year

was i looked at that market i'm like

this isn't really sustainable i'm going

to prep for a crash and guess what

happened starting september 4th

the market pulled back and so i was able

to take advantage of a market pullback

by what i like to call breaking the

glass on my index fund kind of style

stocks

or my basket style stocks which could be

like a basket of 30 to 50 stocks or just

index star

index funds which could be hundreds of

stocks right i'm able to

sell those which usually fall less

and buy the stocks that have fallen more

just as an example

in september of last year we had a broad

sort of sell-off

and the s p was down maybe like 10 to 12

percent at one point

but stocks like tesla were down up to 37

so i like the fact that if i put cash in

i'm on an appreciating market i'm riding

the appreciating wave

but in a really hot market i want that

spread out like butter

and so that way if the market falls

which it did in september worst case

scenario i'm down 12-ish percent now i

wasn't down 12

on that money because i could have just

kept it in cash in that case because i

invested the money spread out through

august

i had gained more than 12 percent than

what i lost in that

so this is why generally i want to be in

the market i don't like having cash

sitting around cash sitting around for

me

is money in index funds so when those

index funds

fell and i gave back some of my returns

in the index fund i was able to

sell those stocks or in other kind of

like baskets like medkevin.com

for me is kind of like a basket it's got

like 62 stocks in it

which 62 stocks pretty much has the

the uh spread of an index fund

except these 62 stocks are more

concentrated in tech so

maybe not as much of a spread but

studies show that once you have

30 to 40 diversified stocks you have

almost the similar diversity

as an index fund if you're actually

spreading them into different sectors

which i wasn't i mean they were mostly

all tech anyway but anywho

so i take that money break the glass buy

the stocks that have sold off

well i'm basically doing the same thing

now so here's my strategy now

my strategy today is simple and i call

it

spring cleaning i'm going to go around

my portfolio

and look for a bunch of smaller

positions that i have that i created in

january or february

as ways of kind of diversifying and i'm

going to sell those

off and then concentrate my portfolio

without going more into margin so here's

the beauty

i get rid of and clean up all of the

small positions i have

that aren't going to move the needle

anyway like a stock that has ten

thousand dollars in it for me

is not going to move my portfolio at all

like it could

quadruple and it's it's not it's not

going to do anything for the portfolio

and so while it's nice to have money

kind of spread out into different stocks

i want to spring clean sweep up all of

these into a nice

bucket sell them and take that money

without having to take money out of

margin and dump it into my high

conviction place

this again for example spring cleaning

now

since some of these were acquired

between like october

and november and december and january

most of this should be relatively star

like

tax neutral uh though there will be

gains because

net net there are gains but relative to

the money i freed up

it's going to be pretty small so i'm not

too worried about taxes in this

obviously if i had accumulated this

money

five years ago i probably wouldn't sell

because the taxes would be

way way way higher but i created a bunch

of new brokerage accounts

like m1 finance robinhood and i

transferred money over to chase

in november and there are a bunch of

stocks that have sold back down to their

november lows

so i kind of feel like ah i can do

something paying a small amount of taxes

relative to the portfolio totally fine

and really concentrate down into my

favorites and just for comparison

a 22 000 stock in my portfolio makes up

one-tenth of one percent of my portfolio

so

like i said even if that stock moves

really really well and

even though i might like that stock it's

just not worth keeping it

so here's specifically what i did i'm

just gonna name some of these because i

sold like somewhat around

like i don't know 55 different stocks

it's a lot but here's just an example of

some of them

shopify 59k gm 8.4 k

spotify 7 beyond meat 37 purple 25

carnival 16 win 25 fastly 25

delta 12.5 ebay 11 microsoft 13

facebook 14.2 dominos 4.3 netflix 30

fisker 2

walmart 30 snowflake 18 tattooed chef61

cloudflare 18 target 13 twilio 40

blizzard29 qualcomm 61.

now you might be wondering like gosh

kevin like why do you have all these

small odd numbers in all these different

stocks

well it's because of my m1 finance pie

medkevin.com 1337.

like i really like that because it

really is able to broaden me out in

terms of

the stocks that i'm investing in with

just a click of a button it's like oh

cool i've got another batch of money

put it into the pie and it spreads it

out but again now

my goal is concentrating so i ended up

selling

1.2 million dollars worth of stocks in

total

that was just sort of a short sample of

all of them here

and then what i did is i bought the

following which i'll go ahead and put

these up on screen so here's what i

bought

this is for example what the m1 finance

looks like so at the top here you could

see

sales of 798 and buys of 798

and uh we got these 14 buys and so this

is just

uh just on m1 finance and it shows you

here i put a 39 into expi

and that's already a concentrated

position so even though it's like oh

well 39 kevin did you just like

sell 39 in one stock to put 39 into

other

yes but these are positions that i've

got

big numbers in already well like each of

these positions

that i have is is at least probably now

today

a 300 dollar figure uh which

and and some of these are quite a lot

more and i know

i'm just saying these numbers so you

could try to relate it to your portfolio

just you know change the percentage

average

uh or or the the weight so to speak i've

given you enough detail in this video to

already figure that out

but anyway the point is i'm

concentrating into those that in my

opinion

are at decent levels that have sold off

at least relatively

and i don't mind adding to so you can

see here we've got

expi wayfarer peloton square square's a

little bit

higher right now so not ideal but with

m1 finance that

you know m1 finance you don't have all

of the luxury of just kind of manually

choosing things you can but i kind of

just put it into my pies and let it do a

little bit of a rebalance

because i closed out my 1337 pie and

moved it into

new pies that i'm making which i uh will

reveal soon

talked with course members about this

this morning and explain this all

in big detail about the new pies that

i'm making and the new things i'm i'm

concentrating into

but this kind of gives you an idea of

what that's going to look like already

palantir 82 pinterest 15 redfin 33

disney 39 tesla 262 000

cciv matterport got almost 100k uh amd

ubiquity and lemonade also got funding

but that's just one set this was another

set

this came from jp morgan and they kind

of gave me a spreadsheet of okay kevin

these were the trades we did for you and

so you could see 145 here went into

tesla

and then very similar right we've got

end phase expi ghvi

palantir peloton redfin pinterest etsy

lemonade 431 and the other was the seven

uh whatever 98 figure so this kind of

shows you

what i sold and it's really just to

triple down essentially on my top

10 to top 20 positions so i'm really

concentrating top

10 i really want to be like 70 70 to 80

percent of my portfolio

top 20 should be like 15 to 20 of my

portfolio that next set of 10.

so top 10 70 to 80 next

set would be the next top 10 and that

would make up somewhere on 15 to 20

percent

and then maybe some miscellaneous uh

like swing bats or momentum bets can

come after that

so in my opinion given that some of

these names like even tesla have sold

off nicely

i'm able to make this transition at a

pretty good price point

to get into tesla and some of these

other stocks in my opinion

nicely sold off prices uh and so in my

opinion because i'm getting into these

at lower prices

i'm going to be able to boost my roi

substantially

now usually when i do my projections i'm

looking for

a double in five years on a conservative

basis

with some of these numbers i like

matterport

uh or or even uh tesla

certainly uh palantir uh you know

lemonade some of these these positions i

mean almost all of them

i could see all of these at least

doubling within the next five years

which works out to a 15

roi per year compounded so it's like 15

15 15 15 15

whatever five times uh but because some

of them have sold off so nicely

i think i'm going to be able to triple

some of these in five years which really

works out to more like a 25

uh annual compounded rate of return

that's like 25 25 25 25.

now we'll see don't have to be right

i would love to be right but uh that's

that's kind of what i'm gearing

towards with this investment decision

now i have to be realistic too

i recognize that the odds of having a

compounded return of 25

over the long run over a portfolio is

relatively

low uh now 2020 was an anomaly for many

of us we had

over 150 200 returns on our portfolio

i know i'm one of them i'm very grateful

for that but i also realize over warren

buffett's career

his average compounded rate of return

was 17

which is slightly more than a double

every uh five years

so if i could beat that great if i miss

and maybe i ended up being too

concentrated oh well these are the ones

that i know when they go down i laugh

and i buy more if i'm too spread out

and sometimes stocks go down and you

don't have

super high conviction in them you might

look and go man why do i have this

anyway

and that's not good like you don't want

to sell when things are

down now fortunately because i sold and

bought at the same time

it's not like i've taken any money out

of the market so yes some positions i've

sold

at lower prices but i'm also buying at

lower prices

so that's okay in my opinion it's just

really a way of concentrating my

portfolio down

and keep in mind the things that i sold

they're not necessarily things that

i think are bad companies like i don't

think shopify is bad i don't think

beyond meat is bad i don't think purple

is bad i don't think

a carnival or wind or fastly or delta

are bad

i think there are a lot of great

companies in what was sold but

i sold them because i don't have large

enough positions in them

to where even if they do well they're

not going to move the needle and i'd

rather take that money and put it in my

really high concentration stocks

my or high conviction stocks concentrate

down

into those so all of the stocks that i

sold

phenomenal companies don't get me wrong

but

we're concentrating into what i think

are going to be the big big winners

over the next five years i'm super

excited about that we'll see how the

journey goes oh i've got two of me here

oh well so you had two of me for a while

i hope you enjoyed it

thank you so very much i will see you in

the next video

and if you want to see all of the

details uh the full reveal of exactly

every single position that was bought

and sold since i didn't list them all

here

uh that is listed in the stocks and

psychology of money

course so check that out watch lecture

1.0

and you'll get to join and follow along

see those links down below in that

coupon code and folks we'll see in the

next video

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you