2022 was a great year for my business. We had record revenues. I stopped making adjustments to the company value because there is also a downward trend in the M&A market. Ultimately, I expect the business to fetch more than the 'Business Value' indicates, but let's see what happens when it happens.
My other investments didn't do well. I propped up my retirement but had to accept significant losses. So, it's a sidewards movement.
Similiarly, I had to adjust the value of my houses off their peaks.
I will continue to build out a bond ladder. The short-term treasuries (bills) fetch 4.5% and more. So, it's a good way to store cash that is not immediately needed. I was able to pay down this year a decent amount of my mortgages. I will continue to do that in 2023 even though the interest rates are around 3%.
The next 12-24 months will be potentially bumpy in the public markets. The US might escape a recession but internationally the picture is not as straightforward. There is a lot of geopolitical risk that could impact the markets negatively. My main objective is to keep growing my business profitably which is the best hedge in uncertain times. I will be aggressive in deleveraging, building out my bond ladder, and continuing to invest in Fortune 500 index funds and selected company stocks.
Happy New Year! |