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.
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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