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.