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.

Snapshot: Concentrated portfolio August 2020

This is my concentrated portfolio per 07/08/2020. Company 1-5 have cumulative weights of around 55 % of my entire portfolio, while he cumulative weight for the concentrated portfolio is 67.7 % (the diversified portfolio make up the remaining 32.3 %). The fate of Company 1-5 will clearly have a dominant effect on the portfolio as a whole. I have held these five companies for a while, except Sparebanken Vest (bought last year), and I hope to hold all five for a long time.

The remaining six companies in the concentrated portfolio are newer and for the moment small positions. If they stay small over time, they will be sold. I include them in the concentrated portfolio because I plan to follow these companies, and I remain interested in their development. There are also a few companies that I consider including in the concentrated portfolio in the future (that I do not own at this time), depending on their development and the available price. This includes among others Kid (home interiors), Salmar (salmon farmer), Protector (insurance), Norwegian Finans Holding (holding company of Bank Norwegian).

Company Business Weight MCap Held since 10Y perf. 10Y CAGR YTD perf. Cost/sh Return
1 Bakkafrost Salmon farming 22.2% 32.600 MNOK 12/2012 2.018.5 % 35.7 % -14.2 % 112.90 441.9 %
2 Apple Consumer products 16.2%   1.948 BUSD 04/2015 1.284.1 % 30.1 % 52.4 % 152.34 202.4 %
3 Pareto Bank Project bank 11.1%   2.700 MNOK 04/2014 204.2 % 15.8 % -1.2 % 28.11 58.3 %
4 Sparebanken Vest Savings bank   4.9%   6.700 MNOK 09/2019 242.4 % 13.1 % 7.0 % 54.90 22.9 %
5 Sparebanken Møre Savings bank   4.3%   3.000 MNOK 05/2012 205.9 % 11.8 % -0.3 % 292.97 140.8 %
Hunter Tankers (crude)   2.4%   1.900 MNOK 10/2019 -41.1 % 3.54 -22.3%
Kraft Bank Bank   2.3%   0.307 MNOK 09/2019 -36.5 % 8.03 -9.2 %
Huddly Video Cameras   1.4%   1.637 MNOK 06/2020 291.4 % 110.41 24.1 %
Hafnia Tankers (clean)   1.3%   6.200 MNOK 01/2020 -38.6 % 16.05 -13.0 %
Norske Skog Paper   0.9%   2.300 MNOK 10/2019 -26.9 % 42.61 -37.6 %
Berkshire Hathaway B Holding company   0.3%    509 BUSD 03/2020 160.3 % 10.0 % -7.5 % 195.38 5.5 %
Concentrated Portfolio 67.7 % 115.5%

My total return (last column) 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 and YTD performance, I have used Yahoo Finance and Adj. close prices (adjusted for dividends and splits). In the case of Pareto Bank, which has not been a public company for 10Y, I have used my own price data going back to 31/12/2012 (from company presentations and data from NOTC), hence the performance for Pareto Bank is not 10Y but approximately 7 years and 7 months (I have adjusted for dividends and splits, for simplicity on a non-reinvested basis).

Next time I write, I plan to go write more about the companies in the concentrated portfolio, and especially Company 1-5, and also my thinking when composing this portfolio. You may follow me on twitter as @eivinderiksen and leave any comments you may have there.