Good evening to the community,

I need a few opinions from you on downsizing.

at the moment there are 40 individual stocks + 1ETF in my portfolio.

I would like to minimize the existing positions to around 30 and then also increase my cash holdings.

The final list includes

$O (+0,02%) , $MRK (-0,73%) , $PG (+0,24%) , $LIN (-1,41%) , $PEP (-1,25%)

during the selection process I realized that I only picked out the "defensive stocks".

This would mean that my portfolio would then only consist of "tech stocks".

That's why I'm wondering how best to handle it to avoid a "cluster risk".

How do you personally deal with this?

What would be the alternative?

What else would you have on your final list?

I'm looking forward to the exchange!

Greetings go out to the community ✌️

Following the rebalancing of the S&P Quality Aristocrats last Friday, the following stocks were removed from or added to my two ETF indices (50% weighting):

New additions:

$QDEV (+0,43%): $NOVN (+0,02%) , $REL (-1,49%) , $ITX (+0,47%) , $LSEG (+6,37%) , $DB1 (+0,96%) and more

$QUS5 (+0,04%): $BKNG (-2,75%) , $MRK (-0,73%) , $CRM (-0,66%) , $UNP (-2,65%) , $COR (-0,03%) , $CAH (-3,76%) and more

Kicked out of both indices and therefore according to S&P no longer Quality Aristocrats are among others: $BATS (+1,71%) , $7974 (-0,33%) , $HD (-0,98%) , $LOW (+0,07%) , $HLT (-3,17%)

In addition, the allocation of all individual stocks in the indices was reduced again to max. 5 % was limited.

Thanks to the recent rally of $$HY9H (+2,78%) my current top 10 weighting (ETFs+shares) is as follows:

3.48% Alphabet

3.04% SK Hynix

3.04% Broadcom

2.93% Meta

2.75% Microsoft

2.71% Apple

2.71% NVIDIA

2.55% Taiwan Semiconductor

2.13% Mastercard

2.08% Visa

New portfolio key figures:

P/E: 27.1 (<30) 🟢

Forward P/E: 21.1 (<25) 🟢

P/Β: 11.5 (<5) 🔴

EV/FCF: 28.7 (<25) 🟡

ROE: 42% (>15%) 🟢

ROIC: 19% (>15%) 🟡

EPS growth for the next 5 years: 15% (>7%) 🟢

Sales growth for the next 5 years: 9% (>5%) 🟡

My internal rate of return is currently 20.19%

👋 Introduction & background

Hey everyone!

I'm 33, married and dad to two small children (18 months and 2 months old). I've been working in the automotive industry since 2011 and in management consulting since 2019. ⚙️🚗💼

My wife is an engineer and also works in the automotive industry. 👩‍🔧🚗

I've been with getquin since 2022, but so far I've been reading along rather than actively posting. 👀

My wife is currently on parental leave and receives parental allowance. I will go on parental leave in Q2 2026 (also with parental allowance), then she will start working again. This means that only one of us will receive a full salary until the end of 2026 - but we'll still be sticking to our savings and investment quota. 👶💶

💰 Current status:

A good mid-six-figure amount has already been saved in our custody accounts. 📈

👶 Children & investments

For each child, we invested €10,000 in the Vanguard FTSE All World ($VWRL) (+0,55%) invested. In addition, each child receives €150 per month in the same ETF - via junior custody accounts at ING. 📊

💍 My wife's investments

She invests monthly:

- 🌎 500 € in the MSCI World ($XDWL) (+0,52%)

- 💸 500 € in the Vanguard FTSE All World High Dividend ($VHYL) (+0,31%)

📈 My investment strategy

Long-term, diversified and with a focus on cash flow & wealth accumulation.

🔹Core portfolio (ETF & Bitcoin)

900 € flow in monthly:

- 💵 €500 in SPDR S&P 500 ($SPY5) (+0,51%)

- 🌍 €200 in Vaneck Morningstar Developed Markets Dividend Leaders ($TDIV) (-0,08%)

- ₿ 200 € in Bitcoin ($BTC) (+1,68%)

🔹 Individual share savings plans (€25/ €600 each)

Target per company: €10,000 investment amount.

Currently participating:

$DB1 (+0,96%) , $UNP (-2,65%), $RACE (+2,13%) , $MRK (-0,73%) , $MUV2 (+0,09%) , $DGE (-1,17%) , $DE (+1,66%) , $TXN (+0,46%) , $AWR (+0,3%) , $ADP (-1,03%) , $PLD (-0,12%) , $HEN (-0,42%) , $ITW (+1,49%) , $UNH (-0,46%) , $LLY (+0,99%) , $BEI (+0,74%) , $MCD (-0,98%) , $DTE (-1,7%) , $WMT (-0,47%) , $COST (-0,49%) , $WM (-0,38%) , $JPM (+0,09%) , $BLK (+0,15%) , $SY1 (+0,59%)

🔹 Cash reserve

💰 Set aside at least €1,000 every month to be able to strike flexibly when opportunities arise.

🏘️ Real estate strategy

We live in our own home and own a rental apartment that pays for itself. ✅

Further real estate purchases are planned. 🏡📈

🎯 Target (15-20 years)

Financial freedom - with the option of part-time or complete independence from employment. Focus on more time for family, projects and quality of life. ✨

How do you structure your portfolios? What is your strategy and what are your long-term goals?

I look forward to the exchange!

I closed two historical positions:

• $BTI (+1,71%) with a gain of +66%
• $MMM (+2,81%) with a gain of +50%

With the freed capital I opened new positions on Target ($TGT (+0,51%) ) and Merck ($MRK (-0,73%) ), to continue diversifying and target sectors that I see as solid in the medium to long term.

📈 Always with the idea of growing the portfolio in a balanced and sustainable way.

A sector that has lost so much ground in recent years, I think it's time to put something in the portfolio, I was undecided between $MRK (-0,73%) e $PFE (-0,23%) but seeing the data the former has had a steady growth in earnings, revenues and R&D investment, as well as a lower payout ratio than Pfizer and a higher dividend increase over time, more than sustainable by the way, another interesting factor is the exchange rate, a purchase gone through at the exchange rate of 1.1737, much better than the previous purchase of $MAIN (-0,96%) which took place for 1.1699 eur/usd.

I would have loved to have added$O (+0,02%) to ride the wave of the rate cut but the broker Directa only reserves it for "professional" clients, a scam....

As things stand right now I would say that for the next month I am going to add an ETF between $ISPA (+0,81%) e $VHYL (+0,31%) , I intend to have both in the future but following a contrarian strategy, that is, buying the one that has lost the most in the past month (or gained the least).

I am still relatively new to the subject and find $MRK (-0,73%) really interesting.

What do you think of the share?