Mission

Butterfly Investing...

...is a way to grow your wealth in a way that is similar to the way in which a butterfly flies... gracefully. But when you find an opportunity do you... Diversify? Or go all in?

A rule of thumb is that it is not advisable to put more than 8% of your net worth into a single investment at a given time. So diversify! But what if that opportunity is a fund comprised of many different investments (as Warren Buffett suggests), does it become advisable to invest more than 8%... So go all in!?

The idea of the butterfly is to find the middle ground in these situations and invest more heavily when one of the wings (i.e., industry / sector) is low. This way, investors can have a more control of their portfolio without needing to go against the grain by maintaining a high performing fund.

"Basically any attempts to pick the times to buy or sell, I think, are a mistake for 99% of the population. And I think that even attempts to pick individual securities is a mistake for people.”

They don’t need to do anything but (invest in a low-cost S&P 500 index fund). Then they’ll get a decent result over time. To some extent, the smarter you try to be, the worse you do in investments. Now, there’s a few professional investors that will do better than the S&P over time. But the average individual isn’t going to be able to find them. And they don’t need them. That’s the beauty of it.”

Butterfly Steps

(1) Pick a fund, and determine the weighted amount of each individual stock. Weight investments towards stocks that are in value territory / cheap (i.e., when part of the butterfly's wing is low) with the Butterfly Pillars Analysis.

(2) Each quarter / personal investment cycle, weight the investments slightly heavier towards the stocks that are in value territory.

(3) In the next quarterly financial statement release, reweight to align with target fund and then add stocks that are in value territory.

About & People

The primary objective of Butterfly Finance is to offer a mindset shift to those who are struggling to grow their net worth or have a fear of becoming their own fund manager. The goal of this website to provide affordable resources that emphasize the importance of long-term strategic planning, portfolio rebalancing based on calculated value and dollar-cost averaging in an easy-to-understand format. The ultimate goal is to make personal financial independence achievable to anyone through demystifying "value" in the stock market.

The creator of this website is an engineer who has a personal understanding of the challenges faced by individuals in precarious financial circumstances. Having experienced both significant triumphs and devastating losses as a former gambling addict, the creator is uniquely equipped to offer valuable insights and guidance to those seeking a path to financial stability.

This website runs on donations with a minimum rate of $1/month to unlock "Butterfly Breakdowns", including pillar analysis and personal budgeting tool.

Paul

Founder