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.

Diversified Portfolio

I follow two different investment strategies in my portfolio. In my diversified portfolio, I own positions in a large number of companies that I believe in. The dominant part is diversified stocks, which consists of stocks in companies with great growth potential and optionality, where I accept that the future cash flows are less predictable. A small portfolio of mutual funds makes up the rest of the diversified portfolio. I expect large volatility in the diversified portfolio, and prefer that it is at most 50% of my total portfolio.

Investing principles: Rule Breaker Investing

The companies in the diversified stock portfolio are in a large part selected for maximum upside potential. Many are small/medium caps (or where at the time when I got interested in them). At the outset, this was an equal weighted portfolio with small positions (although I have bought some of these companies several times when my conviction in them grew stronger). The diversified stock portfolio consists of 96 companies (down from well over 100 companies last year). I hope to hold most of them for a long time.

The selection of the stocks in the diversified portofolio is strongly influenced by David Gardner and The Motley Fool, and I subscribe to several of their services. I like David Gardner's six signs of a Rule Breaker company:

  1. A top dog and first mover in an important, emerging industry.
  2. Sustainable advantage gained through business momentum, patent protection, visionary leadership, or inept competitors.
  3. Strong past price appreciation.
  4. Good management and smart backing.
  5. Strong consumer appeal.
  6. A documented history of being viewed as overvalued.

Update: Diversified stock portfolio 2022

This is my diversified stock portfolio, updated on 04/02/2022.

  Diversified stocks            
  Company   Weight Cost/sh Total Return      
1 ETSY 1.9% 89.25 64.3%
2 MELI 1.7% 782.87 34.1%
3 TTD 1.6% 43.78 102.1%
4 SHOP 1.5% 672.29 40.7%
5 ETHX.U 1.4% 13.07 3.8%
6 DDOG 1.3% 62.52 140.4%
7 ROKU 1.1% 134.28 18.2%
8 TEAM 0.9% 160.66 99.7%
9 AXON 0.9% 122.48 16.7%
10 UPST 0.8% 131.43 -25.0%
11 HUBS 0.8% 336.43 65.0%
12 HDLY 0.7% 8.49 0.4%
13 PINS 0.7% 45.09 -39.6%
14 MDB 0.6% 140.39 187.4%
15 AMZN 0.6% 2,226.59 41.6%
16 OKTA 0.6% 116.69 63.7%
17 VEEV 0.6% 133.50 74.4%
18 TREX 0.5% 40.72 119.3%
19 ZEN 0.5% 85.62 14.1%
20 DOCU 0.5% 169.22 -30.0%
21 NSKOG 0.5% 33.00 58.2%
22 NVDA 0.5% 203.93 27.2%
23 ISRG 0.5% 190.09 50.3%
24 FLGT 0.4% 71.38 29.3%
25 TDOC 0.4% 132.81 -43.9%
Others 10.7%
      32.2%   7.5%      

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