Growing from 2021 to 2022

 It’s the end of the year and time to take stock of my finances. Overall it was a good year professionally and I’ll have the opportunity to increase net income and investments in 2022. First a look back.

The retirement accounts increased by 19%, a nice gain. I’m pretty much fully invested in those accounts and plan to stay that way for the near future. With 10 years to go until retirement (approx), I can tolerate pullbacks. That said I’ll take risk off the table starting at S&P 5000. 

My share of an investment company increased by 15%. This is even better because I added no new money and even took a distribution. Adding that back in, the company holdings increased by closer to 23%.

Everything else was flat. A big focus of the next 2 years will be to build up my liquid accessible holdings. I want a buffer, a war chest. I’ve learned that big expenses come up. Private school during a pandemic. Moving expenses. A car. 

There will be many more big expenses. Braces, college, etc. 

Right now the goal is to keep the compounding machine going. At retirement, I’ll need to turn that into an income machine. 

IDEAS FOR 2022

I won’t bore with my portfolio today but I still own a lot of growth companies that may or may not change the world. Today I’m thinking of 2022 picks.

1. Disney. Omicron will actually hasten the end as more people get it and the virus becomes endemic and routine. The world realizes we can’t close down for something that will be with us forever. So people will go to Disney Land/World. And then watch Disney+ at home. 

2. ASML. Monopoly on semiconductor equipment. 

3. Coinbase.  I don’t own cryptocurrency. My bad. COIN is the infrastructure for making crypto useful. It’s way down from its high, but now looks interesting at a 30 p/e while still in hyper growth mode.

4. Tesla.  If the world is transitioning to EVs, there is only one company producing them at scale. There are no Teslas on the lot. Additionally, battery infrastructure and data and autonomous and first mover all favor Tesla. 

5. Intellia, Crispr, Editas, Caribou, Verve … Gene editing stocks will continue to build data in 2022. I don’t know which will win (my guess is Intellia is furthest along), but the slightest bit of news will send these soaring and probably spur acquisitions. I own the basket.

I have other picks but these are some of my top ideas.

I’d also like to own part of a parking lot but I’m not sure how to do that.

MORE IMPORTANTLY

Finally, financial stuff doesn’t matter at all without family and friends and health. This year I want to be the wise and patient dad that I’ve always wanted to be. My extended family has been very lucky but I’m seeing more and more trouble, challenge, heartache, especially with boys maturing into men. Myself included. If my finances go to zero but my boys grow into good men, I will be rich.