Portfolio Update

August 2025 Portfolio Update

August was a rough month, the compounding portfolio has been hit hard, but the fundamentals are getting stronger, so nothing to worry about. The Income portfolio has done extremely well during those downturns, and that’s it’s purpose, it was conceived as a hedge, a protection against downturns.

Income Portfolio

The income portfolio is still beating the market. This month alone it added $8K in profits. Since January, it has outperfomed the SP500 by a lot, blue line is SP500 performance, green is ours:

Goal of the income portfolio is unchanged: Generate 5% every month over the next decades. In May we generated $14K out of a $150K account size, June was $9K, July $10k, August $8,5K. So far, we are above our conservative target of 5%. Which makes our overall plan seem less ambitious, and quite realistic:

2 Changes:
1) 90% CSP unchanged, but I stopped selling CC when assigned. I now just sell the sahres at a loss and immediately sell the next CSP. Sharing all trades and templates in the Sprint Club in real-time as usual.
2) 10% Credit Spreads. Also known as verticals, Credit Spreads use far less buying power, and make the overall portfolio more capital efficient. The learning curve is steep, the first 11 Credit Spreads we all winners so far. I had to update our template sheets as the calculations got more complex, but I want our members to have as simple a daily process as possible. Otherwise it’s hard to keep it up for decades. Here the updates process:

I share each trade live, with members of the Sprint Club. Goal is to accelerate each other’s journey to financial literacy and 5-7 repeatable low-risk income streams.
Our method is simple, based on 3 rules:

Before we dive into each position of the “Compounding Portfolio” of high quality steady compounders, what is our definition of high quality?

Learning: Static ROIC is not as relevant as the ROIC trend. We want to see high ROIC that is expanding, and can continue to do so for many years. Hence our new ranking system:

The score is weighted based on what matters most for long term compounding machines. This is the first time I share the weights publicly:

Compounding Portfolio

This one has been passively compounding. Boring, as it should be. We sold one stock, and added one stock. Only one addition of $30K is planned for September, a rare 20x opportunity at a decent valuation. Become a paid subscriber to access the sections from here: All portfolio allocations, the stock we added, the one we sold and the one we plan to add in September.

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