A year ago on November 2020, I set a goal to achieve a NW of $2M by end of 2022. I crossed $2M on Oct 2021 , a full-year before my target date.
I also bought a fourplex investment property – which after renovated by mid 2022, is projected to yield me 5%+ cash on cash ROI. I initially targeted 7% cash on cash ROI, but my property is in Victoria Park which is an A+ neighborhood, so I am pleased with the lower ROI.
I am now setting a super aggressive goal of doubling my wealth in the next 1 year. The following statement is attributed to Elon Musk.
“If you give yourself 30 days to clean your home, it will take 30 days. But if you give yourself 3 hours, it will take 3 hours.” — Elon Musk
Because of my super aggressive goal, I need to take massive risks for non-linear/outsized returns. Rather than focusing on my portfolio distribution as I did in the past, I will take 10% of my wealth or ~$200k to take make massive risks.
What is the downside of taking such as risk on 10% of my portfolio?
- Lets say, 10% of my wealth goes to zero, the remaining 90% (or $1.8M) should still grow at 10% per year and I can save about $120k+ from per year (job income+stock dividend/trading), which means I should end up with ~$2.1M (or a ~5% increase).
- Not bad. Unless the stock/crypto/real estate market all crashes, then I will be down substantially, but I still have my dividend paying stocks + real estate to live off.
- I am young, in my 30s. I can recover and rebuild.
With the worst case scenario manageable, let’s get to the strategies. I will divide my 10% or $200k capital into the following investing schemes:
- Automated Crypto Trading: Crypto is very volatile which makes it a good asset class for trading. My goal is to automate crypto trading via writing my own trading bot or building on top of other trading bots.
- I will allocate 40% or $80K to it. The goal is to get 240% annual ROI (or 20% monthly) from it or make ~$190k net profit.
- LEAPS on stocks: Few sectors such as EV, FinTech, e-commerce are experiencing massive growth. I will allocate 20% or $40k to invest on Leaps calls. I target 4x+ (400%+ return) or $160k net return.
- Crypto pump and dump: Allocate 20% or $40k to shitcoins – this will be done via automated scripts scanning twitter threads to watch out for next shitcoin being pumped. Typically, shitcoins have returned 0-100x return. Target is a 10x return or $400k net profit. Downside of losing entire capital easily.
- Build my own online brand (YT, Twitter, IG, Tk etc.) and sell stuff: Allocate remaining 20% of my capital for investing in advertisement for my own brand. The goal is to generate outsized profit from my own online brand. This is also the strategy that is most sustainable compared to previous ones – such as meme stocks or crypto pump+dump.
There’s less than 1% of chance of me being able to pull this off and double my wealth in 1 year, but we shall see how I perform in 13 months from now.