We will be investing in high quality growth stocks. Our aim would be to build this portfolio with at least 20-30 companies. By year end we trim the portfolio down to under 20 companies based on our winners and hold them for at least 3-5 years or longer.
We carefully choose companies that are:
Led by founders and revolutionizing lives by disrupting technology
First into the market and leaders in their domain.
Growing at scale and have at least $10 billion market cap*
Rules to follow:
- Book 20% of profits, when you feel very good about your portfolio. It's the sign that you achieved what you planned and it's time to raise some cash.
- Keep adding money to your brokerage account monthly, but only the money that you don't plan to use in 1-2 years. Dollar cost averaging is the best long term strategy.
- Never take loan or use margin money for long term investing. If you use margin then be smart about it and book profits or cut losses early.
- Remember that market always come back, so would your gains.
- Correction happens it's a sign of healthy market.
- 30% of market corrections are rare and happens only once or twice in a decade. Generally 5%-10% correction happens twice a year
- Holding on to strong, great and visionary companies is the key to long term investing.
- Never panic sell, apply 3-day rule. Meaning wait for at-least 3 days before selling your long term holdings.
- Sometime best strategy would be just to not look at your brokerage account for a week or two.
- Year end perform re-balancing, feed your winners and do tax loss harvesting.
Portfolio 2022 composition:
- Core stocks (80%) - Core stocks are the building blocks of this portfolio, these are the stocks we have highest conviction. In this category we will own high growth tech companies and large cap stocks. These companies have proven business models and growing at scale. And must be at least $25B of market cap.
- Explore stocks (20%) - These companies can be under $25B, they could be can be micro, small or mid cap. Such companies are trying to grow at scale and still establishing their businesses, but currently undervalued. These are the companies with highest risk associated with them, but usually it's this category we find our multibaggers, if we hold the stock for long term.