M1 Monday: Jealous Ones Still Envy

My M1 Portfolio

My M1 Portfolio

I’ve been sharing my investing progress on the M1 app since May 17, 2021. Alongside providing a weekly summary of my portfolio transactions, today, I’d like to delve into the creation of my M1 portfolio.

Click here to view my M1 portfolio

In March 2018, I signed up for the M1 app after opening my RobinHood, Stash finance app, and Acorns accounts. My plan was to try all four apps and share my findings with the Facebook investing group I had created a year earlier.

As the M1 app became my fourth brokerage app, and given my affinity for acronyms, I decided to name my M1 portfolio “Jose” after the Rap artist Fat Joe’s fourth studio album, “Jealous Ones Still Envy.” While I wouldn’t consider myself a Fat Joe fan, naming things isn’t my strong suit, and honestly, JOSE was a pretty decent album.

As mentioned in last week’s post, the J.O.S.E. Portfolio comprises four mini portfolios, each with a unique name:

  1. Raging Bull
  2. Income Every Day
  3. Top Shotta
  4. Flavors of the Day

The Raging Bull mini-portfolio was designed as a long-term portfolio, composed of stocks I thoroughly researched and am passionate about. It represents 25% of the Jose portfolio and currently boasts a dividend yield of 2.80%. This is a “never sell portfolio.”

Contrary to what one might think, The Raging Bull mini-portfolio was NOT named after Martin Scorsese’s film. I chose the name Raging Bull because I was very bullish on the 19 stocks in this portfolio. All 19 stocks were handpicked from my watchlist, with the expectation that they would perform as well in 2018 as they did in 2017.

The Top Shotta Mini-portfolio is a diverse collection of 42 stocks with low debt and/or high cash reserves. I created this mini-portfolio because, at the time, we were only 10 years past the financial crisis, and I knew that the bear market wouldn’t last forever. In case of a crash or recession, I wanted to ensure that the companies in this portfolio wouldn’t be dragged down by their debt.

Additionally, I wanted to invest in companies with substantial cash reserves, allowing them to expand without relying on debt or even acquire distressed businesses. The Top Shotta portfolio currently offers a dividend yield of 0.61% and was named after the 2002 Jamaican crime-drama, Shottas.

The Income Everyday mini-portfolio is centered around dividends and includes 38 stocks. Originally, it was meant to hold stocks with a minimum dividend of 3%; however, due to COVID-related dividend cuts, the portfolio currently yields only 2.53%.

The Flavors of the Day is the fourth mini-portfolio I created within the M1 app, consisting of seven ETFs selected to bring stability and diversification to the J.O.S.E. M1 portfolio. This mini-portfolio currently boasts an expense ratio of 0.39% and a dividend yield of 1.36%.

Although I’m not particularly fond of the current expense ratio, it represents only 25% of my M1 holdings, making it less of a concern as long as the ETFs maintain balance within my other holdings. I named this portfolio “Flavors of the Day” because, unlike the previous three mini-portfolios, the Flavors portfolio was created using ETFs, making it easy to adjust based on market conditions.

M1 Transactions: 1/3/22 to 1/10/22

Morning Trading – Jan 10, 2022

86 Excluded, Buy count: 1

ABMD Abiomed Inc.

Total value: $1.13

Dividends issued: Jan 7, 2022

+$0.02 CB Chubb Limited

+$0.01 SEIC SEI Investments Co.

+$0.02 PEP PepsiCo Inc.

+$0.03 FF International Flavors & Fragrances

+$0.01 DRIV Global X Autonomous.

+$0.01 DRIV Global X Autonomous.

Morning Trading – Jan 6, 2022

88 Excluded, Buy count: 2

TYL Tyler Technologies, Inc.

BX Blackstone Inc.

Total value: $2.08

Morning Trading – Jan 4, 2022