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 based on following criteria:
Led by founders and revolutionizing lives by disrupting technology.
First into the market and leaders in their domain with heavy moat.
Growing at scale and have at least $10 billion market cap*
Growing basic earnings per share, profit margin, revenue and sales quarter after quarter and year over year.
Rules to follow:
- Booking 20% of profits when you feel confident in your portfolio, as it is a sign that you have achieved your goals and it's time to raise some cash.
- Adding money to your brokerage account monthly, but only using money that you don't plan to use in 1-2 years, in order to take advantage of dollar cost averaging, which is the best long-term strategy.
- Avoiding taking out loans or using margin money for long-term investing, and if you do use margin, be smart about it and book profits or cut losses early.
- Keeping in mind that the market always comes back, so will your gains, and that corrections are a sign of a healthy market.
- Holding onto strong, great and visionary companies is key to long-term investing and never panic selling, instead apply the 3-day rule, which means waiting at least 3 days before selling your long-term holdings.
- Sometimes the best strategy would be to not look at your brokerage account for a while, as it will fix itself, because you have confidence in the stocks you invested in.
- Perform year-end re-balancing, by feeding your winners and getting rid of companies that have stopped executing.
Portfolio 2023 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 multi-baggers, if we hold the stock for long term.
Note: We focus on high growth stocks, Growth investing is substantially risky but highly rewarding We also hold dividend paying stocks in our portfolio
Total Return YTD on invested cash: 24%
Avg Dividend Yield : 4%
Dividend Paying Stocks:
BSTZ : 10.8%, BST: 9.56%, BIGZ : 11.31%, PHG : 5%, PTVE : 3.5%
PORTFOLIO 2023 snapshot - Inception 1st Jan 2023