My Journey of Making 16% Returns from US Stock Market

Yes I made 16% returns this year, check the below screenshot.

Introduction

Hello everyone, my name is Aman Bhatia, and I am a Salesforce Developer with almost 2 years of experience.

In addition to my job, I am a passionate investor who likes to explore different investment opportunities. Today, I want to share my experience of making 16% returns from the US stock market despite the market’s volatility and high-interest rates. I hope my experience and insights will help you to understand the market and make better investment decisions.

Understanding the US Stock Market

The US stock market is the largest and most liquid stock market in the world, with a market capitalization of over $40 trillion. It includes many blue-chip companies such as Apple, Amazon, Facebook, Google, and Microsoft, which are known as FAANG stocks. The US stock market is also known for its volatility and high-risk-high-return nature.

My Investment Strategy

When I started investing in the US stock market, I was a bit nervous due to the volatility and high-interest rates. Therefore, I decided to invest in a diversified portfolio, including both big tech giants and small and medium enterprises. My investment allocation was 70% in FAANG stocks, 20% in small and medium enterprises, and 10% in emerging tech stocks.

As Warren Buffet said,

“Diversification is a protection against ignorance. It makes very little sense for those who know what they’re doing.”

Therefore, I diversified my portfolio to minimize the risk and maximize the returns.

My Investment Journey

I started investing in the US stock market in January 2022, and within six months, I made a 16% return on my investment. The journey was not smooth, and I faced many ups and downs due to the market’s volatility. However, I never panicked and stayed committed to my investment strategy.

I invested heavily in the FAANG stocks as they are the backbone of the US tech industry and have a stable track record of growth. Additionally, I invested in small and medium enterprises that have a high potential for growth and are undervalued by the market.

During the year, the US stock market faced many challenges, including the rise in interest rates, Russia-Ukraine War, and the geopolitical tensions. However, I stayed calm and followed the market closely, and made some smart moves that helped me to mitigate the risk and maximize the returns.

Conclusion

In conclusion, investing in the US stock market is a challenging task, but it can be rewarding if done wisely. Diversification and long-term thinking are the key factors that can help you to achieve your investment goals. As Warren Buffet said,

“The stock market is a device for transferring money from the impatient to the patient.”

Therefore, be patient and committed to your investment strategy, and the rewards will come eventually.

Thank you for reading my blog. If you want to know more about my investment allocation and strategies, please comment below. Also, please support me on Medium and share your views on my investment journey.