My Portfolio
Hey, here you’ll discover the strategy guiding my choices, track the performance of my portfolio, stay informed about updates, and feel free to ask any questions.
Portfolio Strategy
My portfolio is exclusively dedicated to individual stocks, aiming for maximum returns. It consists of three distinct types of stocks, each serving a specific purpose: core holdings, short-term ideas, and speculative plays.
Each segment plays a role in executing my overall investment strategy, from maintaining a cool-headed approach to maximizing returns.
Core Holdings
Constituting the most substantial portion of my portfolio, approximately 70%, these holdings are carefully chosen based on the following criteria:
Strategic Significance
I invest in companies that stand to benefit from specific events, either acting as a direct proxy or contributing significantly to their industry.
Understanding and Vision
I focus on businesses with understandable models or where I see aligned visions between the management and the company’s future.
Fundamentals and Unit Economics:
Core holdings are characterized by strong fundamentals, including profitability, a solid balance sheet, healthy margins.
Valuation:
I accumulate these stocks when the valuation is reasonable, considering the implied growth, overall company quality, and industry context.
Short-term Ideas
Reserved for ideas with a shorter time frame, the allocation in this category is intentionally kept below 25%. Given the higher risk, I adopt a more flexible approach to criteria, often making decisions based on market sentiment, short-term challenges, and events that can be rectified within a brief period, influencing the market positively.
Speculative Plays
This segment allows for more flexibility and fewer restrictions. With an allocation of less than 5%, speculative plays include stocks of businesses with appealing strategies and proven profitability over a few quarters. Due to their inherently volatile nature, careful consideration is given to maintain a conservative allocation.
Performance Metrics
I initiated this portfolio in September 2022, providing full transparency into its returns, including all buys and sells.
Time Efficiency
Despite dedicating a year to researching stocks and attending earnings calls, I acknowledge that I did not outperform the S&P 500 during this period. This realization has led me to consider the value of investing in an index without spending extensive time on individual stock research.
First-Year Reflections
However, I find value in the learning process and consider myself fortunate not to have incurred losses in my first year, despite underperforming the market. Throughout this journey, I’ve gained valuable experiences, including:
1.
Patience
Avoid rushing to accumulate the desired allocation. Instead, create a price range and gradually increase the position.
2.
Bearish scenarios
If a company falls below your bear projection, resist panic. Reassess your thesis and continue executing based on your analysis.
3.
Evaluating timing
Resist the urge to re-evaluate stocks too frequently, especially considering that earnings are released quarterly.
4.
Open-mindedness
Be open-minded and consider various sources of information. Select what resonates with you and conduct thorough research based on your chosen insights.
Stock Holdings
Updates on changes to my portfolio and overall strategy will be communicated through articles. These updates will delve into the rationale behind my core holdings and provide insights into the decisions made since the last update.
For detailed information on allocations, buy ranges, and ideas behind each stock, you can refer to the monthly newsletter.
