About

My name is Micah McDonald and I am The Deep Value ETF Accumulator. I’m a retired USAF Crew Chief, which is a fancy title for general aircraft mechanic. I am now a metrology (calibration) technician working in the oilfields in the Arctic Circle in Prudhoe Bay, Alaska.

I am married and have seven children and a multitude of grandchildren. I’m a Christian man who is not perfect, but forgiven. We live in Palmer, Alaska which is about 45 miles north of Anchorage. I enjoy mountain hiking, fishing, driving in the mud, shooting guns, skiing, researching investments, listening to podcasts, reading, spending time with my church family and spending time with my wife, kids and grandkids.

We have the bulk of our investments in a 401k, two Roth IRA’s and a standard brokerage account. We save about 20 to 25% of our income into IRA’s and the brokerage account. I no longer contribute to the 401k, but I do manage the funds that are in there. My 401k allows me to invest in ETFs, which I do, but they take 1% of my money every year in “management fees”.

My investment philosophy is relatively simple. I buy ETFs as if they were mutual funds and I hold them for a very long time. I employ a similar strategy as dollar cost averaging, but with a twist. I buy ETFs that have good long term track records, but are currently out-of-favor and relatively cheap. I trim the fat, or sell just the profits on my holdings when they reach an all-time high or when profits are greater than $1000. That’s my idea of tactical re-balancing.

I have tried my hand at buying and selling individual stocks with some success. I’ve bought and sold stocks based on the IBD, Investor’s Business Daily CANSLIM method with very limited success. I have invested in leveraged ETFs with a great deal of success, until, that fateful time when I invested in UWTI, a triple leveraged oil futures ETN.

Although I was making good money using TQQQ, a triple leveraged ETF that tracks the NASDAQ 100 and BIB, a double leveraged ETF that tracks biotech stocks; I sold off my leveraged ETF’s, because I was losing my shirt in UWTI. The loss I took on UWTI had the most transformational effect on my investment philosophy. It was during that 2-year process of losing money that I finally realized that I am investing for our future and not gambling. I’m not prepared to debate the difference between gambling and investing in this forum, but I learned the difference for me.

Since I finally discovered the difference between gambling and investing, I endeavored to learn all that I could about actual long term investing and wealth building. As I researched and learned from numerous financial titans, I realized that I liked and agreed with several of them, but I also disagreed with some of their advice. Dave Ramsey helped me get out of debt and have more to invest, but I disagree with the use of mutual funds. I learned most of what I think I need to know about investing in equities from Paul Merriman, but I don’t agree with the need to keep a balanced portfolio. I went on to learn even more about long term wealth building from Joshua Sheats, Rob Berger, Todd Tresidder, Roger Whitney, Scott Allen Turner, J. David Stein, Ric Edelman and others. What I learned specifically, is that there isn’t just one way to build wealth over time, and there definitely isn’t just one way to build a long-term portfolio of equities. It was through these mentors that I developed a system of investing in equities that works for people like me. People like me enjoy buying and selling stocks, but we also see the need to keep our heads on straight and build wealth over time. Although each of these mentors teach different methods to invest, each one has contributed in some way to the eventual building of The Deep Value ETF Accumulator.

In future installments of this ‘about me’ series, I will spend some time describing my investment journey. Additionally, I will share some of my personal and financial goals. And of course, I will describe in detail how the Deep Value ETF Accumulator was developed and how I use it as my primary means of investment due diligence.

Thanks for reading and please feel free to drop me a comment or question.

The Deep Value ETF Accumulator; AKA Micah McDonald

12 Replies to “About”

  1. Hi,

    I just came accross your blog and I think you´re doing a great work, I appreciate it.

    Is it possible to be notified automatically of new posts by mail?

    Greetings from sunny Spain!

  2. A nice and stable program for running some long term results. Your premise is an excellent idea. I was able to drop that into Google Finance and have their API run the whole thing automatically so I now I just sit back and watch it every now and then.

    Excellent!

  3. wow.. just came across your homepage.. its really interesting.. i have been in the trading industry for almost 30 years.. 25 years as a FX trader in banks – and last 5-7 years as a stock trader by myself.. i simply needed to get away from the currencies after so many years.. Mostly trading scandinavian stocks – as im from denmark. i have 2 retirement acc i trade from. 1 is for short term single stock trading – the other for medium- long term – and im really looking for some inputs to trading the ETFs in my med-long term portfolio – where i dont need to trade them dayli – but perhaps with longer perirods.. then i came across you.. can i ask – are u looking at any technical stuff when u enter or exit positions ? when you enter a position – do you have a predefined exit plan – stop loss – stop profit ? looking at your etfs – “hold” is that what your currently longs ? i guess corrections is a no go – and dips are etf s looking good to buy ? i just mentioned on twitter for you – look at EDEN – denmark. thanks man im a follower from now on . gert – denmark

    1. Hello Gert and welcome to my blog.
      I appreciate your compliments and the short description of your trading background.
      I might be of little help on your short-term trading goals, but on your medium to long-term goals I’d like to answer your questions by telling you how I am investing in these ETFs.
      I do look at my investments daily to create my daily chart, but there is no need for me to watch them since I only buy once or twice a month.
      One of the main drivers in my investment strategy is to put up self-imposed barriers to keep me from over-trading.
      I do not look at any technicals except how far the listed ETFs have fallen from their 52 week high.
      I use to incorporate the 200 day moving average (DMA), but I lost that capability with Yahoo and was forced to use Morningstar for my data, which doesn’t give me the option to use the 200DMA.
      I am in the accumulation phase of my investing journey and will be for at least 13 more years, so at this point I would say my holding period is 13 or more years.
      I do not use any stop losses; in fact, the further one of these ETFs drop in value, the more likely I am to buy more to bring my cost basis down.
      I do not have a stop profit either, but I do sell some profits off the top if that profit is greater than $1k and/or greater than 1% of my entire portfolio.
      I never sell my entire position in an ETF, I just trim profits occasionally.
      These profits that I trim do 3 things for me: 1. frees up cash flow to buy a different ETF that is out of favor, 2. reduce risk by trimming a position I may be too heavily weighted in, 3. adds diversity to my portfolio.
      This method of re-balancing a portfolio is what I call tactical re-balancing as opposed to what most advisers recommend which is more strategic in that they re-balance by a calendar date or they use re-balancing bands, such as ±5%.
      By using the term “hold” in my chart, this is what I do. I either “hold” that ETF, or I refrain from buying it, or I take the opportunity to trim some profits. (This all depends on how much I profit I’m carrying.)
      I do prefer to buy when an ETF is in ‘correction’ mode (-10%) or in worse condition, but this current bull market has given me few opportunities to do that, so I will buy when an ETF is only suffering a ‘dip’ (-5%).
      I saw your comments on EDEN in Twitter. Thank you for the lead. I am always on the lookout for new investments.
      I have my own personal bias for older funds, so I try to stick with funds that are 10 years old or older.
      EDEN is only 5 years old, but I am definitely keeping it on my radar screen.
      I maintain a few other self imposed trading rules on myself that I use to control my desire to trade frequently.
      I do not buy more than once a week.
      I buy or sell at least 1% of our entire portfolio during any trade.
      I do not place orders while the market is open.
      I only use limit orders.
      I hope I’ve answered your questions sufficiently, if not, please write again.
      Thank you
      Micah

  4. awesome man.. really like your way to look at it.. im very much basing my trading on technical analyses… always using weekly charts – and zooming into dayli as well – using the 50 and 200 ma on dayli… that said – we all like to buy whats cheap and at the moment not much has falling that much to put it into the box cheap.. thats why i recommended EDEN for you as that has dropped 10-12 pct lately – but of course understand u need to have a 10 year frame at least before u enter a certain ETF.. thanks indeed man. i totally follow your ideas – and will be on the page often to see.. at the moment im planning to enter more ETF -i just need to find some thats hedged in euros – cause i dont want the pain beeing too much exposed to USD – im from scandinavia.. thanks for your time man. and keep in touch.

    1. Hi Gert
      Thank you again for the lead on EDEN.
      This is a very tempting opportunity, so I will be re-thinking an investment in EDEN.
      I know that WisdomTree has quite a few currency hedged ETFs.
      I don’t know how they would work in Euros, but I do recommend WisdomTree funds.
      I do not buy currency hedged ETFs because the benefit of the hedge goes away when held for a very long time (in my opinion).
      But, if your time horizon is shorter, I can see the potential benefit of a currency hedged ETF.
      Thanks
      Micah

  5. I poked around your site a bit, read this page obviously. I don’t really get it. What are your valuation methods? How often do you trade? Do you have a target number of etfs? What do the terms mean in your spreadsheets (“correction”, “pause”, etc)?

    1. Hello Norm
      I will attempt to answer all you questions in order:
      – Valuations – I’m not using any traditional valuations. The ETFs are ranked highest to lowest by distance from their 52 week highs. The further below the 52 week high, the higher they appear on the list. Ultimately my valuation is the fact that I value each of these asset classes and ETFs, and I want to be invested in each one, but I’m attempting to buy them when the are ‘on-sale’.
      – Trades – I typically buy once or twice a month. I usually buy on Monday’s if I have enough cash to make a purchase. I only buy or sell 1% lots; meaning, 1% of the total value of our portfolios. So, if I don’t have 1% in cash, I wait until I can raise 1% cash. I rarely sell, but when I do, I must have at least a 1% of my total portfolio value in profit to make a sell. I never sell an entire holding; I only trim the fat (sell the profits).
      – Number of ETFs – My target number of ETFs is all the ETFs you see on the list, which is currently 30 ETFs.
      – Mode ‘terms’: I will reference a short article I wrote about the mode. Defining Stock Market Modes: Depression, Crash, Bear, Correction, Dip, Pause, Hold: https://deepvalueetfaccumulator.com/blog/defining-stock-market-modes-depression-crash-bear-correction-dip-pause-hold/
      I hope I was able to answer your questions.
      If not, please write again.
      Thank you for reading the dvetf.com and thank you for your questions.
      Micah

  6. Micah,
    I just discovered your blog and it’s great! I read your profile and I just say, Christian, shooting guns, investing, outdoors; we are kindred spirits!
    I just retweeted your REIT accumulation as I think that NOW is a perfect time to purchase that sector.
    I’ll be frequenting your blog from here on out.
    God Bless,
    MrFIREby2023

    1. Hello Mr. FIREby30
      I appreciate your kind comments. It’s good to meet another brother in the finance blogosphere. REITs are beginning to look like they’re bottoming out. Need to exhaust all the week holders. We’re currently at 22% REITs and will continue accumulating until they do bottom out.
      Thank you again for reading and commenting on my blog. I’ll checking out your blog also.
      Micah

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