Immaterial. You assume way too much. I'm in my early 40s
I have $4m ASX portfolio (Mining and Financials) and I have another $1m in cash to buy any crash.... it rhymes. I have the same size portfolio in the US (Tech Mostly) and in ASIA (Industrials , Sony, Samsung, Toyota etc). So really $3m aud cash to buy any crash.
So that is a sneak peak of Exised ~$22m portfolio. $12m in equities - financials, mining, tech and industrials. $3m Cash, around $6m in tangibles like property, land, vehicles, antiques and 22kg gold (mostly and some Ag) which is my insurance. If things go pear shaped on all the equities, I can be assured that I can start over again using my gold. At 40ish years old achieving, $22m in a little bit over 20 years of investing is not a bad track record. I can say that the compound accretion in the last 5-6 years have given me 90% of that $22m... Pretty crazy if I look at it in those terms but that is the effect of compound accretion.
Here is the kicker. You don't get to enjoy compound accretion if you keep buying and selling. The real trick to investing is that there your holding is driven by personal circumstances, not economics, not market pricing, not even company fundamentals anymore... If you can get into a position that do not require you to sell because you do not need the money. The better it is for your wealth moving forward. But if you constantly buy and sell to every market signal there is; or worse move entire positions over to new investments then you don't get to enjoy compound accretion which is where most of the fun is...
PS. I come from a piss poor background but I did catch a lucky break and ended up in London straight after uni working in a commodities desk. A bit of luck and lots of hard work. When there is blood in the streets buy! Asian Fin Crisis, GFC, COVID etc you name it I was there buying.
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