Invest in my Child's Education

This close to an e-Sport Super Star

Supposedly, every 9 years your investments should double. At an 8% average yearly rate, this is just math (8% compounded 9 times is 1.999...I'm going to round up). Historically, the S&P has averaged 12%(!!) so doubling is even faster - 6 years (again, this is just math). I bring all this up because towards the end of 2021, my wife became pregnant, and in 2022 we already needed to think about how to pay for Little P's college - if she choses to go. I know I'm on the hook for thousands of dollars' worth of Diapers, Food, and Formula in the near term. Perhaps we'd need a larger SUV or House. None of that scares me...but for some reason, College Tuition does.

Perhaps it's due to the fact that my parents partially paid for mine, and I remember the stressed it caused. Perhaps it's due to the fact that I paid my own way through Grad school, and I still know the stress that caused. Perhaps it's due to the fact that my entire post undergrad career I've learned about the power of compound interest. I literally have no clue but paying for college scares the shit out of me.

Since 2003, College Tuition has increased 6.6% Year over Year compared to standard inflation increasing 2.6% each year. That means my $16k a year tuition @ Pitt, now will cost me $35k i.e., a BMW 3. Every year. OK, maybe I do know why College Tuition scares me shitless. 

4 of these might be a better investment, idk...

In January of 2022, I decided to build the VIOLET ETF (her name is Violet Elizabeth, and I thought this would be cute), and create an investment portfolio that will pay her way through college. Whether I assumed an 8% or 12% return, my hope was to double my investment 2 to 3 times. Again - Tuition isn't getting cheaper, so I have to quadruple up as soon as I can...

Here was my Bold AF strategy: Buy the Highest Market Cap Stock whose Symbol starts with V. I. O. L. E. & T. then let it ride all year.

If you can't explain your strategy, it's too complicated - Michael Scott or Warren Buffet...probably

On 1/5, I bought up Visa, Intel, Oracle, Eli Lilly, Estee Lauder, & Tesla in equal-ish amounts, and watched it throughout the year. And boy what a year. Let's just say, there weren't any Meme Stocks and/or Moon Launches here. Even if Elon wasn't involved in this demise, these were some big stocks that sucked. And they sucked hard. I mean V's original name was going to be Amelia, so I got lucky there. That situation included 4 stocks (Apple x 2, Microsoft, Estee Lauder & Intel) that lost over 30% in 2022. My strategy, for lack of a better word, was dumb...& at my rate of return loss, Violet had better start looking for scholarships.

So...did I piss away money on this? Perhaps. Will I continue to piss away money on this Strategy? Perhaps not. Should I have named my child LUX and rode the Eli Lilly, United Health Group, and Exxon Mobil wave for an increase of 38%!!? Absolutely.

All this is, is a reminder that a better strategy would have been investing in the broad market. If you've not heard of the Buffet vs Hedge Fund 10-year war...Buffet's strategy inevitably won out: on average, you'll do better if you go with the crowd instead of trying to pick your stocks.

So in January of 2023, VIOLET will be sold, and back to my typical strategy for investing: Tech ETFs, a Foreign ETF, some Bond ETFs, Small Cap Growth ETFs, reinvest Dividends, etc...

Sorry Baby V, you'll just have to be boring like me.

#NoToTheMoon #NotSoDiamondHands