Portfolio Strategy 2025

Time to sit down and review our current portfolio and the plan moving forward. Grab your favorite drink, and let’s dive in. Oh and we’ll meet Ayrton Senna today.

Our Strategy 2025

We want to double every 5 years, with minimum risk. Our portfolio needs to grow 15% annualized for it to happen. Which is realistic, since we achieved 20% over the last decade. In order to reduce risk, we want to own max 12 high quality companies. More would be impossible to monitor. In addition to those 12 companies, we own one commodity. And those make 70% of the portfolio, while 30% generate income under any market conditions, in form of conservative options. Low risk option that generate 8% annualized while protecting our downside and making us ready to buy into corrections, stagflations and recessions. Do you remember Ayrton Senna?

It is unlikely to beat the market as an investor. Unless we can avoid buying low quality companies. Buy high quality companies at decent valuations. Keep them long enough for them to compound. Protect our downside risk. Never maneuver ourselves into a position to be forced to sell. Generate enough cash with conservative options so when corrections happen, we can buy at very attractive prices. Sound hard, right?

How We Will Double Every 5 Years

Our current portfolio has an expected CAGR of 14.2% which would make it double in value every 5.07 years. But if we add on top of that 8% annualized from our options, and reinvest them in our 12 quality companies during corrections, stagflations, recessions, we could be surprised upwards.

Also, we are monitoring around 9 companies on our watchlist right now. Access our complete watchlist in our community.

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