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.
— Andrew Carnegie

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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