Feng Shui Your Portfolio: My Journey to a More Resilient Investment Strategy

Disclaimer: This article reflects my personal experiences and opinions. I am not a professional financial advisor, and any decisions you make based on this information are your own responsibility. Always do your own research and consider your risk tolerance.

Introduction

A few years ago, I decided to take a more proactive approach to my financial future. I started investing in different regions and sectors, believing that 'All World' ETFs were a safe bet. However, I soon realized that my portfolio was heavily influenced by US big tech companies, and I began to question the wisdom of this approach. This is the story of how I came to re-evaluate my investment strategy and apply some principles of Feng Shui to create a more balanced and resilient portfolio.

Real Estate: The Solution?

You think real estate might be the solution to your investment woes. Shops, businesses, or apartments seem like a safe bet, offering steady income and the potential for long-term appreciation. However, real estate also comes with its own set of risks and challenges. Natural disasters, tenants who don't pay, or changes in fashion and demand can all impact your investment. Plus, real estate can be difficult to move and cash out quickly if needed. So, while real estate can be an attractive option, it's important to consider the balance of risk, availability, and return, and to diversify your portfolio accordingly. It's not for me. Beware: The house you live in is not an investment; it's a cost. Remember the three things to avoid for financial health: The third house, the second wife, and the first boat.

My Investment Philosophy

  1. Avoid Toxic Investments: I've made it a personal rule to steer clear of large-cap social media and defense industries. This isn't just an economic decision; it's an ethical one that helps me sleep better at night. Plus, it turns out it also helped me dodge some significant losses, like the Tesla stock crash in Q1/2025. For example, after 'firing' large-tech US companies from my portfolio following the Trump inauguration, I avoided losses from the Tesla stock crash.
  2. Diversify: I've learned the hard way that a single political decision or natural disaster can wipe out an entire sector or region. So, I make sure my portfolio is spread across different sectors and geographic regions. Even if you believe you're investing in an 'All World' ETF, it's worth checking the composition to ensure you're not overexposed to any particular sector or region.
  3. Hold Investments in Different Currencies: I've started holding my investments in a mix of local currency, USD, and crypto. This helps protect against currency fluctuations and provides some liquidity in case of emergencies. For example, I exchange part of my local currency, Mexican Pesos, to USDC, and use a crypto card to use either currency as needed.
  4. Choose Investments You Understand: I've found that my best investments are the ones I truly understand and believe in. I look for long-term trends and try to avoid high-risk, high-gain schemes. Your feeling can help, as long as it's not driven by greed.
  5. Mix Investment Concepts: I like to have a mix of investments that cater to my preferences, knowledge, and risk tolerance. This could include P2P platforms, crypto, and stocks.
  6. Keep It Simple: Complex strategies aren't always the best. I try to keep my portfolio as simple as possible. After all, the goal is to create a positive flow, not to complicate your life.

My Current Portfolio

I believe we're on the cusp of a revolution in AI and decentralized banking (DeFi), so I've allocated more than 50% of my portfolio to crypto, AI, and blockchain technology. Besides, I invested into more traditional ETFs and P2P credits.

Here's a breakdown:

  1. Crypto: I mainly hold Bitcoin (BTC) for its reserve tool qualities, but I also have small amounts of other cryptos for learning purposes and USDC for currency averaging. Remember, there's Bitcoin, and then there's sh...coin. well, you know.
  2. ETFs: I hold four ETFs that I believe are well-positioned to benefit from long-term trends. I rebalance these regularly to maintain a solid growth rate with reasonable risk.
  3. A Blockchain-AI ETF: Although BTC is a great saving and reserve tool, it's not really used in real-life trading because it's too slow, and many bitcoiners are 'HODLING'. Thus, crypto payment systems and platforms, based on different tokens, are rapidly evolving. In addition, new AI platforms and banking products are emerging. This ETF helps me stay exposed to these exciting developments.
  4. An Asia ETF: Up to now, I've visited China twice, and I've been impressed by its fast development in many areas, such as biotech, autonomous mobility, and AI. Asian countries will increasingly challenge the “established” economies. This ETF helps me tap into this growth potential.
  5. A US Mid-Cap ETF: As mentioned before, I exclude large-cap US companies because they impose risks to my portfolio and are against my philosophy of the separation of social commerce and political influencing. However, the US has a long history of ingenious entrepreneurs, and I expect them to find creative new business ideas with global impact. This ETF helps me stay exposed to these opportunities.
  6. A Global Companies for Zero-Carbon Technologies ETF: The transition from oil to sustainable alternatives is ongoing. Why? Because it makes sense, ecologically and economically. People want to charge their vehicles cheaply with their own electricity. The sun heats the water for the shower without charging tariffs. And even governments might understand that local and decentralized energy production is more resilient against external threats. This ETF helps me stay exposed to this transition.
  7. P2P Platforms: I borrow through P2P platforms, which operate in EUR and typically take 20% of taxes from your interest. This provides another source of stable income.

Lessons Learned

Insurance: I've learned the hard way that insurance companies don't always have your best interests at heart. After crunching the numbers, I found that my life and disability insurance had an honest interest rate of just 1%. I cancelled it (“stop loss”) and reinvested the money into P2P platforms, where I'm getting an average of over 10% interest. Remember the rule of 72: 72 divided by your interest rate equals the years your investment needs to double. If the interest rate is 1%, it will take 72 years to double your money. If the interest rate is 10%, it will take just 7 years. Instead of paying every month, I receive double that amount back in interest rates. I call this concept 'Cashflow inversion,' although perhaps it should be named 'Cashflow inversion and amplification.' Review your insurance policies and financial contracts. Are they adequately covering your risks? Will they really pay out if needed?

Conclusion

Feng Shui is all about creating harmony and balance in your environment. I've found that applying some of these principles to my investment portfolio has helped me create a more resilient, diversified strategy that's less influenced by political headwinds and more focused on long-term trends. But remember, everyone's situation is unique, so always do your own research and consider your risk tolerance and preferences for certain financial products.

Happy investing! And remember, as the saying goes, “Don't put all your eggs in one basket.” Or, in my case, don't put all your Bitcoin in one wallet.