Hello,
I have developed a fascination for (strongly) focused portfolios with high-quality shares and am currently giving some thought to how I would implement this.
The attraction is clearly to have a higher chance of outperformance and to be able to follow the selected companies in a more concentrated way. For me, this would also be a more relaxed B&H&C, as there are fewer stocks and only high quality, where price losses are more likely to invite additional purchases.
The higher volatility is not a problem for me, as I can cope with it psychologically and have an investment horizon until at least 2040.
I would still be overweight in tech. The sector allocation would remain very similar to my current portfolio of 16-20 stocks. Tech, pharma/biotech and luxury are my favorite sectors with which I feel sufficiently diversified.
I would also make sure that the companies themselves are somewhat more broadly positioned or, if "one trick pony", then with a strong moat (e.g. $ASML (+0,97 %) ).
Option 1 is the following (extremely focused!):
20% $MSFT (+1,55 %)
20% $ASML (+0,97 %)
20% $MC (+1,39 %)
20% $DHR (+0,31 %)
20% $BTC (+0,34 %)
Variant 2 is similar, only with 2 companies per division:
10% $MSFT (+1,55 %)
10% $GOOGL (+0,04 %)
10% $ASML (+0,97 %)
10% $AVGO (+0,78 %)
10% $MC (+1,39 %)
10% $RMS (+1,82 %) or $RACE (+1,84 %)
10% $DHR (+0,31 %)
10% $VRTX (+1,3 %) or $MEDP (+0,67 %)
20% $BTC (+0,34 %)
What are your thoughts on this? People who also have a focused strategy are also welcome. 👍🏼
Best regards