Note: Numbers are reported as of Nov 1st 2021
Yet another month gone by and time for yet another monthly net worth update.
Before we get into the numbers, here are some anecdotes highlighting strange times in financial markets that we are living through!
- For starters, Tesla is now a Trillion Dollar Company with valuation greater than all cars companies across the world. Elon Musk net worth has swelled to >300 B, by far exceeding the second wealthiest person on planet, Jeff Bezo, whose net worth stands at 203 B and as of this writing has surpassed John D Rockefeller as the richest person in human history! All this on the back of Tesla delivering ~240,000 vehicles in Q3 of 2021, a small fraction of all new car deliveries to consumers.
- Squid game token, a crypto coin based on the very-popular Netflix TV show Squid Games, rose from 0 to $2856 in a matter of couple of days to only fall back to zero as the originators of the coin siphoned of $2 Million dollars from investors
- Shiba Inu an obscure cryptocoin rose in popularity with its price rising a whopping 70,000,000 % so far this year!
- DWAC, ticker symbol for SPAC, Digital World Acquisition Corp, rose from ~$10 to >$90 on the news that it was merging with Trump Media & Tech Group to only fall back to $56 as of this writing.
A common theme behind the apparent eye-popping rise in the market value of these assets is that there is a story behind each of these trades and a prevaling feeling of YOLO and FOMO amongst retail investor crowd! This market sentiment was most appropriately captured by Barrons columnist Jack Hough in his weekly Streetwise podcast titled, “Investing Has Never Looked Weirder“
To top it all, DOW crossed 36,000, vindicating James Glassman and Kevin Hassett, who circa 1999 wrote a book titled “Dow 36000: The New Strategy for Profiting From the Coming Rise in the Stock Market”. The timing of the book could not have been more wrong at the time as the Dot.Com bubble soon crashed and Dow dropped to 7000. The authors as it turns out were 22 years off in their prediction.
Getting back to the numbers NW progress,
- Net Worth (as percentage of FI number): 136.95
- Accessible Net Worth (as percentage of FI number): 83.65
- Liquid Assets/ Debt Ratio: 4.685
- Cash Balance/Two Year Living Expense Ratio: 1.085
Synopsis
- After a turbulent September, markets have come back roaring again in October and as of this writing we are witnessing all time highs across the board for all indices including DOW, SP500 and NASDAQ. With that AVI portfolio also saw healthy gains both in the retirement and non-retirement brokerage accounts.
- The growth in real estate prices has been relentless in our neighborhood, with AVI house price on Redfin now showing valuation 50 above cost
- Some big expenses on the house coming up for this holidays and up coming Mr AVI trip to India. Will talk about these in my next update.
- All metrics for FI are moving in the right direction and with liquid assets/debt ratio reaching close to 5, its high time for me to consider paying off mortgage on the house! Assuming we see no market correction for the remainder of 2021, I will aim to begin new year mortgage free!
Video/Book/Article/Audio for last several weeks
- Website: Came across a very nice retirement calculator tool. Its quite comprehensive and offers a very detailed summary for retirement roadmap
- Video: Series of Mohnish Pabrai interviews: With students at Williams and Mary College; With students at Oxford; Lecture at Boston College