How I am Investing Exterior My Enterprise in 2026

I imagine you ought to be constructing your private steadiness sheet alongside your enterprise. This is likely one of the eight pillars within the monetary mastery framework I’m writing about.

In the event you’re betting every thing on a future exit which will or might not occur, you’re taking a large danger. Constructing your private web value alongside your enterprise offers you optionality, safety, and allows you to make higher choices since you’re not determined.

So I’m going to start out sharing what my portfolio seems like and monitoring my efficiency vs. the S&P every year. Right here’s my 2026 baseline.

How I Calculate This

Fast caveat: I don’t embody my major residence, bodily possessions, or my enterprise in these numbers.

Your own home is consumption, not funding. Bodily possessions aren’t investable belongings. And your enterprise is illiquid and unstable till you promote it—together with it may give you a false sense of safety. I feel it’s cleaner to trace what you may have in precise liquid investments individually.

The Breakdown

3.5% particular person shares.

I feel investing needs to be 90% boring and 10% daring. It’s best to have just a few bets in case you have deep conviction in an area that you just suppose will outperform, however they need to be few and much between. And you need to make sure that the place dimension is giant sufficient that in the event you’re proper, they really depend.

My two positions: Shopify and Cloudflare.

Shopify is the closest factor to a monopoly in ecommerce outdoors of Amazon. There’s simply not one other good choice within the hosted software program house, and it’s getting extra entrenched yearly. I’m lengthy Shopify.

Cloudflare I do know rather less about their internals, however everybody I’ve talked to loves them and my very own expertise has been nice. They do a variety of issues nicely and appear to have a powerful tradition.

63% index funds.

Principally US whole market, about 15% worldwide, zero bonds. Boring and intentional. I’m working to extend worldwide publicity a bit—worldwide shares ripped this yr and I feel there’s nonetheless room on a valuation foundation, plus it’s good diversification. However the core is easy: broad market index funds, low charges, maintain without end.

12% crypto.

Primarily Bitcoin and Ethereum. Nonetheless imagine within the unique thesis as a non-institutional retailer of worth and a hedge in opposition to authorities financial coverage gone improper.

That stated, it’s a bit unnerving that it’s performing extra like a danger asset than digital gold currently. Gold was up 70%+ over the past 12 months. Bitcoin hasn’t saved tempo, which is unusual for one thing that’s presupposed to be “digital gold.”

However I like the basics long-term, I’ve some features I don’t wish to take the tax hit on, and it’s a significant diversification play as an anti-institutional hedge. The extra establishments purchase it and the larger it will get, the decrease the upside and extra volatility—however I’m nonetheless holding.

11% actual property.

One rental property. Actually not an amazing pure funding—extra a home we love that we’re renting out till we resolve what to do with it.

Establishing and operating an Airbnb for the previous 4 months has given me a brand new appreciation for the way a lot work short-term leases are, even with another person managing it. It’s additionally made me respect what a great deal Airbnb is as a traveler—stroll in, use it for just a few days, pay, and depart with out coping with any of the complications.

9% money.

I like having a cushion, particularly with markets at all-time highs. Half of that is earmarked for a “large bets” fund—ready for one or two high-conviction alternatives the place I can wager meaningfully. Searching for these in 2026.

Lower than 1% personal investments.

Three small bets on founders I imagine in: IntelliGems, Postpilot, and Kanpai Meals. All three have constructed nice firms.

I haven’t put a ton of cash to work on the personal aspect. It’s fascinating when you may have area experience and get alternatives with folks you belief, however it’s a small a part of the general portfolio.

Two Sells This 12 months

Tesla. I held Tesla for about 4 years. Good run. However I offered this yr for just a few causes.

My unique thesis was the product—the automobile was so good and other people have been so pleased with it. However the firm appears to be shifting from being a automobile firm to an enormous wager on robotics, self-driving, and automatic taxis. Not that these gained’t work, however my unique thesis has modified and I haven’t achieved the homework to guage if these different issues are value a trillion-plus valuation.

There’s additionally rising key man danger with Elon. He’s getting older, has labored insanely exhausting his complete life, and is spreading himself throughout a number of firms. That danger grows yearly.

At a trillion-plus valuation with my unique thesis modified, felt like a great time to exit.

Airbnb. This was one in all my worst choices just lately. I made a knee-jerk funding—heard it beneficial by somebody and acquired it as a result of I wasn’t positive what else to do with the cash. Basic mistake.

I held it for six to 12 months, broke roughly even, and offered. After organising my very own Airbnb this yr, I spotted I’m not as bullish on the corporate as I assumed. They’re not horrible, however they’ve been lackluster in progress for years and I’m unsure what the catalyst for change is.

The largest lesson: don’t make 5-out-of-10 conviction bets on particular person shares. In the event you don’t have excessive conviction, simply put it in an index fund.

That’s the Baseline

I’ll report again on the finish of the yr on how this carried out vs. the S&P.

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