“If I hadn’t sold gold, I would now be in full chocolate, and not wondering how I would look without a beard”: Lifehacker's challenge is coming to an end
Get Rich / / January 06, 2021
What's happening?
The Lifehacker and Tinkoff investment challenge was launched in the spring of 2019. In May, Alexey Ponomar and Rodion Skryabin invested 100,000 rubles each: the first in gold and funds, the second in shares of large companies.
Participants regularly tell Lifehacker readers about the status of their investments in home page challenge, and in the middle of the month they remember the successes and failures, make a forecast for the remaining weeks. Those who earn less on investments during the project must shave off their beard.
In February, Rodion was expecting an increase in the prices of VISA and Alibaba shares, while Alexey continued to calmly watch the numbers. At the end of the month, an unpleasant surprise awaited them: the markets collapsed and both participants went into negative territory.
While Rodion is trying to cope with stress on vacation (we called him to ask a couple of questions about investments, but we only heard the sound of the surf and quiet sobs), we talked to Alexey. Last month he lost 7,000 rubles, and now he is inferior to his opponent by over 10,000. Read the article to the end: there you will find new answers to popular questions about investments from a Tinkoff expert.
Interview with Alexey Ponomar
Alexey Ponomar
Judging by the schedule, February ended not very well. What are your feelings from the past month?
In the perspective of what is happening in the last days, it seems that a month ago we all lived in some kind of beautiful and wonderful time, nothing foreshadowed... Literally in one week, everything that had been growing before did not just fall, but collapsed into a deep minus. It certainly adds to the thrill.
How did March start? Have you changed your strategy after such a sad February?
I think that the time should come to spend money: the market will soon find its minimum. It is difficult to say whether this will happen within a week or a month, but it will definitely happen. And then you will need to try to buy in full. I'm just about to do it.
As for the current portfolio, I still leave it intact. It would be wrong to leave when you are in the red, but to do something now is simply pointless. I remain true to my strategy.
At the start of the challenge, you invested in investment funds and gold. What do you think now? Was this the right decision?
Investing money in gold was absolutely the right decision. If I did it at the start with all the money, now I would not worry at all, because my assets would only grow. Gold, as we have already seen, is a conservative asset, and in the event of any shocks, its price rises. It's a pity that I got out of it: I bought a large package at the start, and then blurred it in order to take something else. Eh, if I had not sold the gold, I would now be in full chocolate, and not wondering how I would look without a beard. Since the purchase, it has grown by 40%.
At the beginning of the challenge, you hoped to get 10% profit in a year. Do you think it will work?
It would have been a feasible task if not for what happened. But what happened is a completely unpredictable story. If even one of the factors (coronavirus or cheap oil) had not played, my 10% would have been in my pocket.
Now I do not believe that over the next 2-3 months we will see some kind of sudden resurrection of the global economy, let alone the Russian one.
Another part of your assets is shares of American IT companies. How did they behave during the challenge? Didn't regret buying them?
Everything was rather ambiguous. Added nerves to Yandex, which at some point fell simply due to the verbal interventions of individual legislators, but then it grew so that it turned out to be one of the best securities in my portfolio. ETFs of American IT companies have also performed well all this time. So in the future I plan to keep my assets there.
Are there any stocks in your portfolio that you regretted buying?
Yes, NLMK. For six months after the purchase, it did not grow at all, but only fell, and even now it continues to fall. The only thing he brightened up his presence in my portfolio at least a little was the fact that sometimes he paid some kind of dividends.
And of course, I regretted my sudden decision to invest in the oil sector at the end of last year. At that time it seemed like a pretty good decision, but now, as you know, the worst asset is still to be looked for. But I would not say that I regret anything, this is all experience.
Any advice for budding investors?
There is only one advice: start! The time will come very soon when the market will sink to the bottom and stabilization will begin. Sooner or later, the economy will still grow. Remember only that this may not happen in a month, but in six months or a year. But it will definitely happen.
What are your plans for the remaining two weeks?
I have no plans. The first two weeks showed that life can change radically very quickly. So I'll just watch.
The challenge is drawing to a close. Afraid of losing? Or are you sure of your victory?
I had a pretty losing position from the very beginning. I deliberately chose an absolutely patriotic strategy and kept almost everything in ruble assets. For a while, competition was still real, but now we already see that in the event of any shocks, the Russian market falls several times faster than all the others. So I'm ready to lose.
Vote for the winner
Investment FAQ for beginners
Investing is not easy. Risks await at every turn. To reduce unexpected and unpleasant moments, use advice from Tinkoff expert Kirill Komarov. We asked him a new batch of questions about investments so that you do not make unnecessary mistakes and quickly start earning on deposits.
What are the most stable assets? What can you buy to take an observant position and not worry about losing money?
Usually the most stable assets are US Treasuries. Investors shift to them in case of extreme situations in the financial markets. The market is currently experiencing record volatility and the level of investor fear is high. Because of this, the price movements of most assets are irrational. Many assets, which usually move in price in different directions, are now falling at the same time - both stocks and gold and bonds.
Is it possible to invest not in gold, but in other precious metals? Should I do it?
You can invest in other precious metals - palladium, platinum, silver. But in them, most of the demand is formed by jewelry and industry. And gold is mainly in demand as an investment metal. Therefore, it is more reliable in times of crisis.
What are investment funds? Can you trust them? And which is better: to apply for a block of shares there or to collect it yourself?
Investment funds can be trusted. If the goal is to invest passively, it is better to buy a fund. If the goal is to invest only in selected companies that the investor is familiar with, it is better to buy individual stocks.
In February, the investment market got sick. Is it possible to predict such situations in advance? And how often does this happen?
This doesn't happen very often. Now the volatility is at a record level since 2008. Predicting market crashes is extremely difficult. Even professionals cannot do this. The maximum is to prepare in advance for a collapse and take a defensive position.
This time, the factors that spoke of a possible collapse could be seen back in 2019. But the markets continued to go up, and it was unrealistic to predict what would be the trigger. It was the coronavirus. The best option is not to try to predict market crashes, but to always be prepared for them. Always have a balanced portfolio of stocks, bonds and precious metals.
How to behave in force majeure situations - how now? Do I need to panic and withdraw assets?
In such situations, it is better to do nothing and just wait out the turbulent times, since most likely you will sell assets at the worst possible moment. The long-term investor will wait for the market to recover.
At such moments, aggressive investors try, on the contrary, to invest in assets at an attractive price. For example, Warren Buffett in 2008 bought shares of banks while they were falling, because he knew that these companies would still survive and rise after the crisis.
Check out the other challenge materials for even more helpful investment tips. Until then, place your bets! Who will be left without money and without a beard?
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Find out more🧐
- How to make money on stocks of large companies: Lifehacker's investment challenge continues
- Is it possible to get rich on investments: Lifehacker's harsh experiment with money and a beard