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.
Put all your eggs in one basket, and then watch that basket.
Update: Concentrated portfolio July 2021
This is my concentrated portfolio on 02/07/2021. It consists of five larger positions: Bakkafrost, Apple, Pareto Bank, Kid and Sparebanken Vest. In addition, there are four smaller positions: Swedish Match and Huddly are relatively new positions, and this quarter, I also re-entered into positions in Kraft Bank and Europris. The total weight of the concentrated portfolio is 58 %, and year to date, it is up 14.3%, more or less in line with OSEBX/SP500.
| Company | Business | Weight | Held since | Cost/sh | Return | Return YTD'21 | Perf. 2011-2020 | CAGR 10Y | |
|---|---|---|---|---|---|---|---|---|---|
| 1 | Bakkafrost | Salmon farming | 19.6 % | 12/2012 | 112.09 | 590.1 % | 16.8 % | 1,590 % | 33.2 % |
| 2 | Apple | Consumer products | 11.2 % | 04/2015 | 40.52 | 284.0 % | 3.7 % | 1,624 % | 32.9 % |
| 3 | Pareto Bank | Project bank | 9.3 % | 04/2014 | 30.48 | 113.3 % | 25.9 % | ||
| 4 | Kid | Home interiors | 5.5 % | 09/2020 | 88.68 | 27.7 % | 22.9 % | ||
| 5 | Sparebanken Vest | Savings bank | 4.6 % | 09/2019 | 54.25 | 72.8 % | 23.8 % | 661 % | 22.5 % |
| 6 | Swedish Match | Tobacco products | 3.8 % | 11/2020 | 64.85 | 15.1 % | 20.5 % | 325 % | 15.6 % |
| 7 | Huddly | Video Cameras | 2.1 % | 06/2020 | 12.58 | 14.1 % | -30.9 % | ||
| 8 | Kraft Bank | Bank | 0.9 % | 05/2021 | 12.09 | 78.3 % | 6.6 % | ||
| 9 | Europris | Discount retailer | 0.8 % | 06/2021 | 51.69 | 15.5 % | 9.3 % | ||
| Concentrated Portfolio | 58.0 % | 248.0% | 14.3 % |
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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