Investing in 2024: my Detailed Strategy

In this article, I will share my detailed strategy to invest my money this year, so you can also have some ideas for your investments & create a strategy of your own. 2023 will be a challenging year with an ever rising inflation worldwide and a possible recession, but we'll see that this creates great opportunities for investments as well. Let's start!

The Foundation: Dividend Growth Investing & Crowdlending

For this year, the foundation of my investment strategy will stay exactly the same: investing in dividend growth stocks, and in crowdlending. I plan to have about 80% of the value of my portfolio in those. Let's talk more in details about both investment types. 

First, I will invest massively in dividend growth investing, meaning investing in stocks on the market that not only pay dividends, but also raise them over time. 2023 will be a great year for dividend growth investing, as there are many stocks that are now at a really discounted price, and offer great opportunities for dividend investors. It's not unusual to find great stocks that offer yields above 4%, which was unseen of during the past couple of years. 

By buying those stocks at this lowered prices, you will make sure to have even better returns in the future as those companies will raise their dividends over time.

Let's now talk about crowdlending. By that, I mean investing in Peer-to-Peer lending as well as real estate crowdfunding via dedicated platforms like Mintos or EstateGuru. In this space, 2023 will also be a very interesting year. 

Indeed, as interest rates are rising worldwide, the interests distributed by those platforms will continue rise as well as they already did in the past year, which will make those platforms really attractive again. It's not unusual to see again yields at 13% on Peer-to-Peer lending platforms, and over 10% in the real estate space. 

This makes it a really easy way to get high yields in your investment portfolio in a completely passive way, as most of those platforms have a way to completely automate your investments.

Getting Higher Yields by Investing in Profitable Websites

Let's now talk about how to get even higher yields than the 5-10% that the foundation of my portfolio will bring. For that, I plan to invest more into profitable websites - meaning buying an existing online business that is already generating monthly income, managing it and growing it for even more income. It's not unusual for those websites to have yields in the 30-35% range, which is much higher than the yields I mentioned earlier.. I plan to have about 15% of my portfolio in such investments.

Investing in such websites is not as easy as for stocks or crowdlending platforms: it costs a lot of money (the entry ticket is around $50,000) and it's not really a passive investment. However, there are many possibilities that I plan to explore in 2023 that are really interesting and that offer to solve those issues.

First, there are more and more innovative financing opportunities (like Boopos) that provide financing specifically tailored for such investments. Compared to a traditional bank that usually won't give you any money for such investment, they understand the field and base their funding on the actual income of the site and your own experience, making it possible to get funding to purchase such online businesses. You will also find websites on several platforms like Empire Flippers with a pre-approved financing, making it much easier to buy profitable websites.

I also want to explore the possibility of investing via funds of websites like EF Capital, making it an investment that is not only more accessible, but also have it completely managed for you by a team of experts, therefore making it a completely passive investment.

Equity Crowdfunding & Algorithmic Trading

With all those investments types I mentioned so far, I plan to fill 95% of the total value of my portfolio. However, I also plan to have 5% invested in more risky assets, to have some exposure to those assets as well in the hope that they actually generate a lot of income.

The first investment type in this bucket is equity crowdfunding. It's basically doing the same as angel investors do: investing some money in a startup or early in the development of a company, in exchange of direct shares in the company. This is a really risky field as most of those companies go bust or never actually grow enough to generate significant returns to investors. However, a few of those will actually explode and be sold at really high markups - and it's not unusual to get 10x - 100x returns on investments for those companies. To make it possible to invest in those early stage companies, I will use platforms like CrowdedHero or Seedrs to be able to invest small sums in many good companies.

I also want to explore the field of algorithmic trading, where it's also not unusual to see 100% returns yearly, but at the cost of a higher complexity and a higher level of risk. This is something I've been playing with for a bit, and I am working on ways to make it more passive and accessible by more people as well.

How to Get Started

I hope that those investment ideas of what I plan to invest on this year 2023 will give you some ideas as well for your own portfolio! I will of course publish several pieces of content on my site for you to learn more about each of those topics. 

To help you out directly, I also create a guide to get started in the field of passive investing, that you can get for free by following this link.

All the best for your investments!