All Weather Portfolio

As a long-term-oriented income investor, I try to find the world’s best dividend stocks of companies that will surely outlive me.

All Weather Portfolio - Inspired By Ray Dalio

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Table of Contents

What is An All Weather Portfolio?

Quick preface:  I’m not refering to Ray Dalio’s All Weather Portfolio or All Weather Portfolio ETFs – I am using my own definition.

When I spend time in our small vacation home in the Alps, I love a good winter storm. I then stay indoors, and just watch the snowfall. It’s then, that I simply feel blessed to have a nice fireplace we use often.

The feeling of sitting in front of a fire has something meditative. I then make myself a hot pot of tea, watch the winter storm, and enjoy the feeling that the cold harsh weather doesn’t bother me. As a devoted follower of stoicism, I understand it is all just part of nature. We can not control the seasons, they just come, and go.

And markets behave in similar ways. There are bullish and bearish phases. Inflationary and deflationary times. Ups and downs. We can choose to be bothered by those, or simply sit by, drink tea, fire burning in the background, and watch it pass.

My All Weather Portfolio represents my reliable defensive picks. I selected companies with simple businesses, wide moats, and industries that don’t require constantly re-inventing their products. As an income investor, I depend on constant income streams, in good times or bad.

 

Time In The Market Beats Timing The Market.

Ken Fisher

All Weather Portfolio Investment Thesis

For 99% of all investors, the best approach is to dollar-cost-average into the Vanguard Total Stock Market Index Fund ($VTSAX). A sweet and simple strategy. 

However, it’s also a very boring strategy, and I don’t want to be part of the boring ‘99%’. I am a self-taught DIY Investor, trying to do things differently.

Besides having worked effing hard, I also avoid money managers, because no one will care for my money better than I do. So I take matters into my own hands and am a DIY-investor. 

I build a quite extensive portfolio of commodity stocks, as well as uranium stocks. I find great joy in researching the best companies in the best regions and industries, and allocating the amount of money I like to.

At the moment, my All-Weather Portfolio only represents 6% of my total Net Worth, however, I aim to increase that to 50% by 2025. 

My Digital Asset Portfolio represents 21% of my total assets.  I plan to bring this down to 15%, freeing up 600k USD All-Weather Portfolio.

Whenever Mr. Market offers an opportunity, like e.g. in March of 2020, I will deploy more capital and add to my All Weather Portfolio.

 

1  My strategy is dividend-centric. My goal is to receive dividends from fortress-like dividend machines. I stick to companies that will still be around in 50 years. That means no tech, banks, retailers, or cars. All Too Hard! I like businesses that I pay to not change their product every week. Think Lays Potato Chips. Heinz Ketchup. Milka Chocolate. 

2  I invest internationally, in particular in developed countries. I only consider companies I have a very high conviction in that they will outlive me. Therefore, I stay away from tech stocks (Nokia, Kodak, etc.). I invest in companies creating products that don’t have to be changed all the time.

3  I only invest in companies that do good and have great management teams with proper values. No weapons. No tobacco. No sin stocks.

4  I understand that the human side is the greatest enemy of the average investor. Fidelity’s best-performing accounts are those people literally forgot their passwords or died.

5  I plan to ‘never sell’ any of my all-weather dividend machines and ride through any market weaknesses. I may allocate free funds from dividends as I see fit.

WiseStacker's Sculpture

My All Weather Portfolio

All Weather Portfolio Charts

Below a few charts helping to illustrate my industry allocation and showing my portfolio positions in more detail.

All Weather Portfolio 2022 08 A
All Weather Portfolio 2022 08 B

Real estate investment trusts (REITs), represent about 25% of my portfolio. I appreciate the stability, predictability and steady dividends this category is paying. In this recent article, I share my current 3x Favorite European REITs I’d buy (in 05/2022). 

Another sector I am bullish on in the long-term are Consumer Discretionary companies. One company I like in particular is Warner Bros, that just got spun off from AT&T. I believe there are multiple reasons why Warner Bros will do well in the coming 3-5 years.  

For the younger folks not having any money to invest, check out my recent article called The 5 Best Passive Income Ideas For Students In 2022.

And if you believe investing in dividend stock is too boring, maybe check the three ways I chose to invest in the metaverse.

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