Launching the 'No Deep Dives' Portfolio
Coming in 2024: 15 stocks with allocations ranging from 5% to 10%
I'm excited to announce the launch of a virtual portfolio that I will “manage” here on Substack.
I figured that if I only write about really unique opportunities, I won’t be doing a lot of writing. Managing a virtual portfolio presents an elegant solution. It allows me to provide more frequent, shorter updates on a range of companies I’m tracking. This way, I can stay active without needing every post to be a new investment pitch.
The initial structure of the virtual portfolio will be a more concentrated version of my personal account (PA):
Start with 15 stocks
Individual allocations ranging from 5% to 10%
Fully invested (except for a small amount of cash from received dividends)
No shorts, options, or margin
Performance will be tracked in EUR
In my PA, year after year, I end up doing more transactions than I originally anticipated. I’m not shy of doing the occasional short term flip (like buying an earnings dip of a company I’m already tracking and selling it a couple of weeks later). I’ll frequently make small trims on the way up and small purchases on the way down. I usually have between 25 & 30 positions, leading to a less top-heavy structure with a longer tail, where the smallest position is usually around 2%.
My goal for the ‘No Deep Dives’ Portfolio is to slow things down. Fewer transactions.
It’ll also be a way for me to test the potential alpha of all the extra “moves” I make in my PA. If there is none, I have a very good reason to also slow down over there.
You can find the portfolio over here before the start of 2024. I will do a brief introduction on every position soon. Over time, I expect to trim some positions and add some new ones, not necessarily sticking to 15 positions.
I don’t have any strict rules for how I will manage the portfolio though. This is an experiment. It needs to be informative and enjoyable for both you and me (it is after all not investment advice and for educational and entertainment purposes only!)
If it stops being that or if I think it has a negative impact on my investment performance, I will end the experiment.
(Shout out to value and opportunity / https://twitter.com/memyselfandi006, who’s been running his portfolio on the blog for over 11 years!)