Everyone perceives risks individually. Everyone tries to independently assess the risk of a share or the current economic situation on the stock market.

In portfolio theory, risk is primarily measured using the standard deviation. In simple terms, this is the extent to which a share price moves. If this movement is correlated with the "market", this results in a beta. If this is < 1 bedeutet das, dass der Kurs einer Aktie geringer als der Markt schwankt. > 1, the result is a disproportionate fluctuation. The "market" is an elastic term. For example, an MSCI World, S&P 500 or the DAX can be used as a reference. The result is different betas depending on the index. However, I do not want to go into this topic any further at this point.

Why beta is not relevant for me

• Price fluctuations are not a problem in my current life situation (24 years old; student).
• Every share that grows faster than the market has a beta > 1. As my portfolio is set to grow, a high beta is desirable.

Diversification as a risk?

I often see portfolios with 30+ companies on Getquin. The aim behind this is to minimize risk. In my view, however, what gets lost in the process is the overview - or leisure time, because every share in the portfolio should be tracked and scrutinized.

I have therefore opted for a clearly structured portfolio. There are currently 11 companies (but the number is not set in stone). There are two reasons for this:

I want to know and follow each company in my portfolio well

The impact of a price increase should be significant

My strategy for less drawdown despite fewer shares

• Cover as many sectors as possible
• Consider regional sales distribution
• Know a company as well as possible

Why these companies?

• Heidelberg Materials $HEI (-3,08%). Local monopolies with strong pricing power
• Medpace$MEDP (+0,13%). Enabler of small research/pharma teams. Enables research outside of Big Pharma
• Hims and Hers$HIMS (+2,22%). Generics seller with "cool brand". Enables better margins in the long term.
• MercadoLibre $MELI (-0,65%). The Amazon and bank of Latin America. To benefit from the rise of emerging markets.
• Meta Platforms$META (+2,62%). Monopoly in communication/social media.
• Prada$1913 (+8,08%). One of the few luxury companies that is constantly growing (and not highly valued). More on this in my last post.
• BATS$BATS (-1,11%). Non-cyclical business model. Bought at the time due to significant undervaluation. Now I hold the share to stabilize the portfolio somewhat.
• Sanlorenzo$SL (-2,39%). Yacht manufacturer and thus part of the luxury sector, which I find attractive due to its high margin and low cyclicality.
• Solaria $SLR (-1,78%). My conservative bet on rising energy demand through AI.
• Metaplanet $3350 (+2,23%). Bitcoin gamble with play money.

My criteria for buying shares

Basically, I hardly set myself any limits when investing. I like to invest in shares that are rather unpopular at the time of purchase. The sector doesn't matter, although I prefer high-margin business models.

I like to buy cheap - high P/E ratios put me off (even if FOMO sometimes kicks in). I don't feel comfortable with it because of the potential drop.

Wow. Thank you for reading this!

Now that you know my strategy, I would really appreciate some stock tips tips, that could fit my strategy.

By the way, can you see the portfolio? Because it's my own post I can't check it👀

In my opinion, you can diversify at these levels:

Local (by headquarters, by turnover)

By currency

By industry

By company size (influences volatility)

I try to have as little overlap as possible in several areas in order to keep my portfolio robust.

Example:

$DRO (-2,27%) and $PARRO (+7,25%) : Similar industry, so both are driven by the same news, but have different locations and currencies.

$CACI (+4,18%) Also has some correlation with the two, but is mainly dependent on the movements of the US military.

$8001 (-0,27%) As a boring anchor

$SL (-2,39%) As a "real" luxury play to profit from rising inequality and to have more euro/Italy in the portfolio.

$GRE (+0,17%) Because I see great potential in Greece, see old post

My goal is to beat the market, I'm still relatively young and want to see if I can do it, if not I'll put everything in an etf in 5 years.

Regarding my portfolio, I currently have a cash ratio of 23-25% depending on the fluctuations in the last month.

Purchases of existing stocks:

I plan to increase the financial stocks by 50%, $CG (+1,99%)
$KKR (+1,2%)
$APO (+4,43%)
$TPG (+2,96%) .

In addition, a little $DMP (-3,11%) by 25%.

Sales:

I made the mistake of wanting to $EVO (-1,25%) and $CPRX trade, but then I was too greedy.

I am convinced of both positions in the long term but not in this size in the portfolio, which is why I will reduce both stocks by 33%.

Potential purchases:

$HALO (-1,17%)
$CUV (-0,25%) - Will invest a little extra, otherwise just the 33% from sale of $CPRX. Both around 50 - 50

$SL (-2,39%) - the same as $TISG (-1,37%)

$KSPI (-0,13%) - about as high as $MUM (+0,53%)

$FIH.U (-0,06%) - about as high as $MUM (+0,53%)

$2GB (-0,97%) - about as high as $MUM (+0,53%)

$M12 (+1,49%) - about as high as $MUM (+0,53%)

$CPR (+0,46%)
$DGE (-0,03%)
$RI (+1,29%) - I'll wait and see, but I can imagine that they will develop in a similar way to the tobacco shares. Since I don't want to decide, I'll just buy three for the sum of one. And divide the amount between these 3.

In general:

I'm generally a fan of putting together baskets like with alcohol or the yacht builders.

What would you change because you see a high risk? I am relatively poorly positioned in the tech sector, do you have any other titles that I could take a closer look at in this area?

As announced, here's a little update on January today, nothing long, don't want to bore you

Yield

Yield: 6.82% (FTSE All World: 4.23%)

TTWROR: 7.29%

Thus slightly outperformed, hopefully I can extend this lead further

transactions

Sales:

• Shimano $7309 (-5,46%)
• 
  Medpace $MEDP (+0,13%)
• 
  Apple $AAPL (-2,89%)
• 
  Domino's Pizza $DPZ (-1,31%)
• 
  McDonald's $MCD (-0,06%)

Purchases

• Norbit $NORBT (+2,06%) (subsequent purchase)
• Frosta $NLM (-0,24%) (initial purchase)
• RCS Mediagroup $RCS (+0,54%) (initial purchase)
• Uber Technologies $UBER (+0,59%) (initial purchase)
• Sanlorenzo $SL (-2,39%) (initial purchase)
• Charles River Labs $CRL (-0,91%) (subsequent purchase)
• Simply Better Brands $SBBC (initial purchase)

Looks like a lot of back and forth for now, but with this my portfolio conversion continues and will soon be completed