1. Trading Performance: It has ranged from 25-150% per year over last 15 years. A large part of our trading is done via S&P500 futures and Nasdaq futures in US, S&P500 ETFs (SPY, SPXL), Nasdaq100 ETFs (QQQ, TQQQ), Biotech ETFs (XBI, LABU), and Cryptocurrency (Bitcoin, Litecoin, Dogecoin, Ethereum, Algorand, Chainlink, and Binance coin). Even brutal years like 2020 and 2008 gave profits in trading because we had exited our long positions at higher levels when sell signals came, and we made good profits on the Put options. In both years, we never expected markets to go so low, so we squared off our Put options at relatively higher levels compared to bottom levels. We used Put options because we were not sure of using Index short futures at such low levels. We also suggested buying of S&P500 and Nasdaq100 ETFs at lower levels in deeply oversold markets, which gave very good gains in the following 6-12 months. In general, trading positions carry higher risk because we use derivatives and our position size is often 3-4X of the trading capital. We don’t like high leverage and 3-4X leverage good strong control on trading positions and we can face market volatility better.
2. Investing Performance: It has ranged from 10-50% per year over last 15 years. Our investments are mainly in index ETFs like S&P500 ETF (SPY) and Nasdaq ETF (QQQ). We also make investments in select few largecap stocks like Google, Amazon, Microsoft, Infosys, TCS, Reliance Industries, ICICI Bank, JP Morgan, Goldman Sachs, etc. A tough year like 2008 may not produce any profits in that year, but if we buy at lower levels, it almost ensures 50-100% profit in next 1-2 years. There is no leverage in investments as we use just stocks and ETFs. Our typical holding period for each equity investments in 6-12 months, though we have remained long on our core ETFs for 10+ years. For example: Nasdaq ETF (QQQ) from $50 in year 2010, to about $400 in year 2022. It has been our top investment pick for last 13 years, and will remain so for next 10-20 years.
3. Biotech Investing & Trading Performance: We have been with the US Biotech industry since year 2001, and we have been actively trading Biotech ETFs since 2016. Our core Biotech ETF investments have delivered 20% CAGR over last 10 years, and our Biotech Stock/ETF trading has given another 20-30% above that, thereby creating a very good result.
US Biotech industry has very strong fundamentals. We must understand that billions of dollars are ready to support all new R&D efforts in Biotech, and latest software innovations are accelerating the R&D efforts. We can’t get involved in every Biotech venture, but we can stay invested at the Biotech industry level, and use a few public listed stocks and ETFs, to create attractive gains over next 10-20 years. We also track about 25 biotech stocks, to understand the key trends in the US Biotech industry, and we can use some of these biotech stocks for larger portfolios. We can safely say that all Investors can aim to earn 20-30% CAGR over next 10-20 years on their Biotech portfolio allocation with our direction and guidance.
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