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.
Update: Concentrated portfolio October 2020
This is my concentrated portfolio per 13/10/2020. The top three companies have cumulative weights of around 47 % of my portfolio, while he cumulative weight for the concentrated portfolio is 65.3 % (the diversified portfolio make up the remaining 34.7 %). The fate of the top three companies will clearly have a dominant effect on the portfolio as a whole. I have held these companies for a while, and I hope to hold them for a long time.
Since the last update in August, the concentrated portfolio is up around 15 %. I have not made any changes to the top three holdings, but all three companies did very well in this time period. Of the smaller posts, I have decreased my holding in Sparebanken Møre by 1/3, and increased my holding in Huddly with 50 %. I have also added two new companies: Vaccibody, after the deal with Genentech was announced, and Kid, which I continue to believe in (I owned Kid earlier, but sold this summer - a big mistake). I am still looking into selling some of the smaller positions.
| Company | Business | Weight | MCap | Held since | 10Y perf. | 10Y CAGR | YTD perf. | Cost/sh | Return | |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Bakkafrost | Salmon farming | 21.7 % | 36.8 MNOK | 12/2012 | 2,168,6 % | 36.6 % | 0.2 % | 112.09 | 518.6 % |
| 2 | Apple | Consumer products | 15.2 % | 2.1 BUSD | 04/2015 | 1,243.4 % | 29.7 % | 71.9 % | 37.27 | 238.5 % |
| 3 | Pareto Bank | Project bank | 9.9 % | 2.8 MNOK | 04/2014 | 2,716.9 % | 13.8 % | 3.1 % | 28.11 | 65.1 % |
| 4 | Sparebanken Vest | Savings bank | 4.2 % | 7.2 MNOK | 09/2019 | 249.4 % | 13.3 % | 9.7 % | 54.90 | 24.0 % |
| 5 | Huddly | Video Cameras | 3.0 % | 2.7 MNOK | 06/2020 | 542.9 % | 121.51 | 85.2 % | ||
| 6 | Kraft Bank | Bank | 2.7 % | 0.4 MNOK | 09/2019 | -13.1 % | 8.04 | 24.4 % | ||
| 7 | Sparebanken Møre | Savings bank | 2.6 % | 3.0 MNOK | 05/2012 | 185.3 % | 11.1 % | 4.1 % | 296.34 | 184.4 % |
| 8 | Hunter | Tankers (crude) | 1.5 % | 2.0 MNOK | 10/2019 | -40.2 % | 3.49 | -29.2 % | ||
| 9 | Vaccibody | Biotech | 1.3 % | 17.0 MNOK | 10/2020 | 213.0 % | 57.43 | 4.7 % | ||
| 10 | Kid | Home interiors | 1.3 % | 3.8 MNOK | 09/2020 | 365.5 % | 36.0 % | 100.0 % | 81.72 | 8.4 % |
| Others (Hafnia, Norske Skog) | 2.0 % | |||||||||
| Concentrated Portfolio | 65.3 % | 132.4% |
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 8 years and KID is approximately 5Y (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 diversified portfolio. You may follow me on twitter as @eivinderiksen and leave any comments you may have there. |