Concentrated Portfolio
Disclosure: I own many of the companies mentioned on this web page. The writing is my own, and it expresses my own opinions at the time of writing. I may change my opinion at any time. Additional disclosure: Not investment advice. I am not an investment adviser. You must take full responsibility yourself if you make any decisions based on what you read on this web page.
Update: Concentrated portfolio December 2020
This is my concentrated portfolio per 31/12/2020. The top three companies are Bakkafrost, Apple and Pareto Bank, which have cumulative weights of around 46 % of my portfolio. The cumulative weight for the concentrated portfolio is 63 % (the diversified portfolio make up the remaining 37 %). The fate of the top three companies will clearly have a dominant effect on the portfolio as a whole. I have held these companies for a while, and I hope to hold them for a long time.
Since the last update in October, the concentrated portfolio is up around 13 %. For the full year 2020, the return of my concentrated portfolio is around 12 %. The strongest performers are Apple (up 58 %) and Huddly (up 92 %). In the last quarter, I sold Kraft Bank at around 14 kr per share (average cost 8 kr per share). I have also sold Sparebanken Møre and increased my holding in Kid and started a new position in Swedish Match. I continue to hold my base position (100k shares) in Hunter Group, and have moved from a net debt to a net cash position in the last quarter.
| Company | Business | Weight | Held since | Cost/sh | Return | Return 2020 | Perf. 10Y | CAGR 10Y | |
|---|---|---|---|---|---|---|---|---|---|
| 1 | Bakkafrost | Salmon farming | 20.5 % | 12/2012 | 112.09 | 490.5 % | -5.7 % | 1,590 % | 33.2 % |
| 2 | Apple | Consumer products | 15.1 % | 04/2015 | 40.35 | 240.5 % | 57.9 % | 1,624 % | 32.9 % |
| 3 | Pareto Bank | Project bank | 10.5 % | 04/2014 | 29.00 | 62.6 % | 7.3 % | ||
| 4 | Sparebanken Vest | Savings bank | 4.6 % | 09/2019 | 54.25 | 37.2 % | 20.1 % | 661 % | 22.5 % |
| 5 | Kid | Home interiors | 3.8 % | 09/2020 | 89.73 | 9.2 % | 13.3 % | ||
| 6 | Huddly | Video Cameras | 3.1 % | 06/2020 | 121.51 | 89.3 % | 91.5 % | ||
| 7 | Hunter | Tankers (crude) | 3.1 % | 10/2019 | 3.41 | -5.4 % | -21.8 % | ||
| 8 | Swedish Match | Snus products | 2.4 % | 11/2020 | 674.13 | 4.7 % | -11.4 % | 325 % | 15.6 % |
| Concentrated Portfolio | 63.0 % | 132.4% | 11.6 % |
My total return is based on the following simplified measure: (market value of position + dividends + realized profits)/(historical cost price) - 100 % accumulated for each of the companies I own. Hence this is on a non-reinvested basis. I have reinvested, but not necessarily in the same company at the same time. I have usually built up the positions over time, and the time given in the table (Held since) indicates when I started buying. I use FIFO in my accounting, and use NOK as currency. Cost prices for US shares are expressed in USD using today's exchange rate. Maybe one day, I will move my book over from Excel to Python to create more accurate measures. For the 10Y performance, I have used Yahoo Finance and Adj. close prices (adjusted for dividends and splits, in local currency) and for US share, I have used DQYDJ calculator.
| I plan to go write more about the companies in the diversified portfolio. You may follow me on twitter as @eivinderiksen and leave any comments you may have there. |