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 (+0,06%) ).
Option 1 is the following (extremely focused!):
20% $MSFT (+1,59%)
20% $ASML (+0,06%)
20% $MC (-3,23%)
20% $DHR (-0,38%)
20% $BTC (-0,34%)
Variant 2 is similar, only with 2 companies per division:
10% $MSFT (+1,59%)
10% $GOOGL (+1,13%)
10% $ASML (+0,06%)
10% $AVGO (-1,21%)
10% $MC (-3,23%)
10% $RMS (-3,03%) or $RACE (-2,76%)
10% $DHR (-0,38%)
10% $VRTX (-1,85%) or $MEDP (-0,47%)
20% $BTC (-0,34%)
What are your thoughts on this? People who also have a focused strategy are also welcome. 👍🏼
Best regards