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. Additional disclosure: Not investment advice. You must take full responsibility yourself if you make any decisions based on what you read on this web page.
Concentrated Portfolio
I follow two different investment strategies in my portfolio. In my concentrated portfolio, I own positions in a few companies that I follow closely. For this portfolio, I prefer companies with good operations where the future cash flows are relatively predictable, bought at prices that are not unreasonable. Ideally, it would consist of 5-8 companies that I can hold for a long time. It prefer that it is at least 50% of my total portfolio.
Update: Concentrated portfolio April 2021
This is my concentrated portfolio 10/04/2021. It consists of seven positions, and the three largest positions are Bakkafrost, Apple and Pareto Bank. I have recently cut down on the number of companies in the concentrated portfolio, in part by selling some positions and in part by moving some smaller positions to the diversified portfolio. The total weight of the concentrated portfolio is 59 %. Year to date, the concentrated portfolio is up around 9.8 %, more or less in line with OSEBX/SP500.
| Company | Business | Weight | Held since | Cost/sh | Return | Return YTD'21 | Perf. 10Y | CAGR 10Y | |
|---|---|---|---|---|---|---|---|---|---|
| 1 | Bakkafrost | Salmon farming | 19.9 % | 12/2012 | 112.09 | 535.5 % | 7.9 % | 1,590 % | 33.2 % |
| 2 | Apple | Consumer products | 11.8 % | 04/2015 | 41.15 | 270.9 % | -0.8 % | 1,624 % | 32.9 % |
| 3 | Pareto Bank | Project bank | 9.6 % | 04/2014 | 30.48 | 103.1 % | 20.3 % | ||
| 4 | Kid | Home interiors | 5.8 % | 09/2020 | 88.68 | 19.1 % | 14.1 % | ||
| 5 | Sparebanken Vest | Savings bank | 4.6 % | 09/2019 | 54.25 | 58.1 % | 14.7 % | 661 % | 22.5 % |
| 6 | Huddly | Video Cameras | 3.9 % | 06/2020 | 10.50 | 74.0 % | 19.4 % | ||
| 7 | Swedish Match | Tobacco products | 3.4 % | 11/2020 | 652.88 | 6.8 % | 11.3 % | 325 % | 15.6 % |
| Concentrated Portfolio | 59.0 % | 169.8% | 9.8 % |
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 shares, I have used DQYDJ calculator.
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