Carefree Cloud Portfolio 2021-12-31 Year-End

We rebalance the Carefree Cloud Port once a year at the end of the year.
We keep it simple. We sell everything and start the new year fresh by using
the cash to buy all new positions.

So yesterday – Friday, 12/31/2021 – we sold 46 positions. We added this cash
to the cash we received during the year from 4 firms that were acquired. We
used this total cash to buy 50 new postions from the EMCLOUD Index that will
make up the Carefree Cloud Port going forward from 1/1/2022. We’ll publish
the newly rebalanced portfolio and how we chose the stocks in a seperate post.

The Carefree Cloud Port holds 50 stocks drawn from the EMCLOUD Index which this
year averaged 58 stocks. The WCLD ETF tracks the EMCLOUD Index.

Here’s how the Carefree Cloud Port compared for 2020, 2021, and for the two
years since 2019:

                                                 --- Since 12/31/2019 ---
                              2020       2021     Tot Return    Annualized
                            --------  --------   ----------    ----------
Carefree Cloud Portfolio    + 122.0%   +  3.5%     + 129.9%      +  51.6%    
EMCLOUD Index               + 110.0%   -  2.7%     + 104.2%      +  42.9%
WCLD ETF                    + 109.7%   -  3.2%     + 103.0%      +  42.5%
SPY - S&P 500 ETF           +  16.2%   + 27.0%     +  47.6%      +  21.5%
QQQ - NASDAQ 100 ETF        +  47.6%   + 26.8%     +  87.1%      +  36.8%

Keep in mind…

  1. Smaller portfolios drawn from a larger universe of stocks will have a range of
    outcomes that fall on a bell curve. Some will do better than the larger universe
    and some will do worse. So don’t read much into the 129.9% outcome of the Carefree
    Port vs. the 104.2% outcome of the EMCLOUD Index over the last two years. It could
    just be by chance.

  2. The sample sizes here are WAY too small to draw any meaningful conclusions. For
    more on small sample size, do a search on “The Law of Small Numbers”.

  3. This is a real-money port. However, a 100% permanent loss here wouldn’t affect
    my retirement or other financial goals one bit. In other words, heads I win, tails
    I get a flesh wound, but it doesn’t kill me. That’s the real reason this portfolio
    is carefree, not just because there’s no work or study or skill required.