The Portfolio on 01/01/2024
Overview of the starting portfolio
Disclaimer: This content is for educational and entertainment purposes only and is not intended as financial advice. Perform your own research and consult a qualified financial advisor. The author may hold positions in the discussed stocks. This is not a recommendation to buy or sell securities.
As mentioned in my previous post, starting in 2024 I will keep track of a “No Deep Dives” portfolio.
Without further ado, here it is:
As a reminder, these are the couple of rules I will follow:
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
My “real life” portfolio currently has 28 positions, with the biggest one being 7.20%. But the "No Deep Dives” portfolio is a good distillation of that. Going into 2024, I do own all the stocks you see here.
The following days I will briefly highlight my investment thesis for the different holdings.
Thoughts on Portfolio Construction
Although I try to focus on being a “bottom-up stock picker” first, I have a couple of heuristics regarding portfolio construction.
When buying a new position, I ask myself: what is the effect is on the overall portfolio?
While my general style will probably always gravitate towards “small/midcap value”, I like to have some positions that have a different profile (but of course are still cheap in their own way and have good prospective returns). This way I’ll hopefully have some part of the portfolio still doing well when e.g. small value is getting crushed in general. It allows me to opportunistically trim some positions and rebalance.
CACI, LVMH, NTDOY and CNQ are good examples of this diversification.
Technical Details
I will start with a virtual €1m and “purchase” the portfolio at the closing prices of the last trading day of 2023, getting as close as possible to the proposed portfolio allocations.
I’ll use a flat fee of €10 per transaction. I will deduct withholding tax from dividends received, but I won’t keep track of any other taxes.