Hierarchy of Needs Portfolio
Last year I had this idea. I wanted to invest in commodities to protect against inflation.
My theory was that certain items would be in demand regardless of the inflation rate, and the price would go up to match.
I called this Mazlov’s Hierarchy of Needs.
The type of investments I wanted to make were in the following industries:
- real estate
- military/defense
- industrial minerals like iron, steel, lithium
- food production
It was a bit of a pessimistic portfolio. Instead of investing in optimistic industries, it was preparing for the end of the world.
It hasn’t done too well in the past year.
For the real estate sector, I chose the Brookfield Real Asset Income Fund (RA). It is down only 0.5% since I bought it, including dividends. That’s not too bad. I also invested in VICI (VICI). That one is down around 5%, including dividends.
For the military sector, I chose Palantir (PLTR). Palantir had a sudden 100% surge in stock price about a month ago and has maintained it. I’m up 104% on that. I also invested in Raytheon (RTX). I’m up about 7% on it.
For the industrial metals sector, I chose MP Materials Corp (MP). This one has been a disappointment. Down 10% since purchase. I thought it would do well in an inflationary environment, but it hadn’t. I also invested in Schnitzer Steel (SCHN), also down 10%.
In the food sector, I invested in Nutrien (NTR). It’s down a massive 18% since I invested in it. So disappointed in this one.
I think I will give up on all of this and redeploy the money into something else. Thanks to Palantir, the entire portfolio was profitable.
Next week, I’ll sell all those stocks and maybe move that money into my “stocks for life” strategy.
