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M1 Finance – Personal Review

M1 Finance is an online brokerage platform that offers the ability to create your own custom stock/portfolio known as “pies” at no cost. I’ve been using M1 Finance for a few months and it has been a great experience so far, giving me the option to fail-fast and adapt my pies as needed. Failing fast enables me to have a stake in a stock, albeit a fractional portion, to allow me to see over a period of time how well performs. My risk profile is low since I have the ability to purchase fractional shares of a stock and the ability for me to diversify my pie with other stocks and funds. In addition, there are no trading commissions or fees giving me another incentive to keep trading on this platform.

I want to share my experience with using M1 Finance so far and what some of my own thought processes are behind the pies I’ve created. The ultimate intention being to document over a long period of time how well these custom pies fare against the stocks individually or other managed mutual funds from traditional brokerages.

Disclaimer, this is not financial advice but meant to be viewed for your fun and entertainment. Please consult a certified financial planner for actual investing advice.
For transparency, The Scrappy Investor is an affiliate with M1 Finance and referral links are used throughout this post.

Click HERE to sign up to create your M1 Finance account today.

I’ve started 5 different pies since the beginning of Feb 2019, each with different strategies behind them.

Dividend Favs: I believe in the value of compound interest which is offered through dividend paying stocks. This pie consists of blue chip stocks that have consistently performed well in stock price and dividend payouts. The industries chosen haven had a decent record of paying out dividends consistently while also continuing to increase the dividend payout over time as well.

Below is a screenshot of the gains and returns so far since Feb 2019. I have been averaging in and putting more money into this pie over time. The gain and returns though have been impressive so far with dividends being reinvested into the pie.

Below is a screenshot of the actual holdings within the pie. This was my first pie and I left the distribution weighting evenly among all the holdings.

If you’re interested in using this pie, feel free to Click Here.

Dividend – PPC IAN: PPC IAN has been publishing his in depth reviews of dividend stocks for a while now and I’ve appreciated his attention to detail and meticulous planning for the stocks he’s chosen to purchase. Feel free to refer to his site below:

http://www.ppcian.com/

Below is a screenshot of the pie I’ve created since Feb 2019 that utilizes PPC IAN’s pool of dividend stocks along with approximate weightings behind each with slight modifications on my end.

Below are screenshots of the 30+ holdings of value stocks within the pie. It is meant to cover a variety of industries that have a good record of distributing increasing dividends over time.

If you’re interested in using this pie, feel free to Click Here.

TECH Large Cap Heavy: This pie is based upon the FAANG (Facebook, Amazon, Apple, Netflix, Google) growth stocks focused all within the Tech industry. I wanted to have this pie cover the FAANG companies and take advantage of using fractional shares to buy into the stock.

Below is a screenshot of the holdings within this pie. The weightings are based upon where I believe growth will be primarily for the following years. I have been averaging in and putting more money into this pie over time, therefore take note of the bursts in growth. FAANG stocks are known to set the pinnacle of what growth stocks can do and I’ve invested further into this sector accordingly.

If you’re interested in using this pie, feel free to Click Here.

  1. Long Term Cash Flow Mercy Fund: This pie was created to generate long term cash flow via dividends in the hopes it can be used to continually support mercy/giving related initiatives. My intention, if the fund generates consistent returns, is to continually invest and grow this pie and give away the dividends over a period of time and eventually sell all the holdings to devote to mercy initiatives. The contents within this fund are based upon the Dividend Favs and PPC IAN stocks chosen above.

This fund uses the combination of holdings from the above Dividend Favs and Dividend PPC IAN funds. Feel free to refer to their respective holdings screenshots above.

If you’re interested in using this pie, feel free to Click Here.

  1. High Flyer Indexes: This pie was created to take advantage of the M1 Finance set of “expert pies” across 3 industries, Tech, Retail, and Aerospace/Defense. Each of these expert pies have displayed a history of tremendous and consistent growth.

Below are screenshots of the holdings within the chosen expert pies.

If you’re interested in using this pie, feel free to Click Here.

  1. Baseline – M1 Ultra Aggressive: This pie was created as a baseline to measure against the other pies created above. My goal is to continually improve upon the pies I’ve created above and measure its returns against this Ultra Aggressive fund as progress.

Below is a screenshot of the actual holdings within the pie. It comprises of mostly Vanguard funds across a variety of markets.

If you’re interested in using this pie, feel free to Click Here.

I hope this is helpful to everybody. Please comment below and let me know what your thoughts are, and whether you have any recommendations on how I should create my next custom pie.

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