Portfolio Update - Q2 2024 + Important notice

Portfolio returns (in €)

• 2019: +30.2%

• 2020: +41.8%

• 2021: +47.4%

• 2022: -29.9%

• 2023: +36.2%

• 2024 - Q2: +13.5%

CAGR 2019 - 2023 (5Y)

• Portfolio: +20.7%

• S&P 500: +15.8%

• MSCI ACWI: +11.9%

I have been mulling over a new strategy for several months – a new way of applying everything I know and managing my portfolio, and I think that idea is finally taking shape. Over the last two years I have been little by little trying to concentrate my capital in companies I fully trust to protect my family's purchasing power and limit the risk of losing it all (in order to win, you must first not lose). My portfolio still needs some small tweaks until it takes its final form, but I am quite happy with it, to be honest. My idea is to build my portfolio around 15 or so companies, all of them resilient and capable of increasing EPS by more than 15% CAGR for many, many years. This is the part of the portfolio that I consider "permanent" and I intend to apply a buy & hold strategy to it. However, by being so strict when it comes to selecting companies for this permanent portfolio, I am aware that I am inevitably leaving out many other businesses that, at the right price, can deliver an even higher IRR (at least in the short or medium term) than the former group.

The blog has helped me research many other companies that are equally worthy of attention, even if they are of inferior quality. I believe the short-term nature of the market is causing more frequent opportunities in companies of reasonable quality that are going through temporary problems. My strategy is the following: I will always be fully invested in the first-tier companies of my permanent portfolio and, when a clear opportunity arises within second-tier companies (I have a list of more than 50 that I am monitoring), my plan is to use some leverage to earn a couple of extra points of return. I am very aware of the consequences of misusing leverage and I intend to be very cautious. Proceeds will be used to fund new investments of this kind, buy more shares from companies in my permanent portfolio or just to cover family expenses (as I have briefly mentioned before, my family and I are building our new home).

How does this affect the blog’s posting dynamic? What changes can you expect as a subscriber? Of course, I want to share and explain all my trades and my new strategy. I think that the frequency of investment ideas will inevitably go up from now on – I don't know if that is a good or a bad thing in itself. In addition, I have always been a bit hesitant about sharing my trades in real time, but I think that now it may make more sense to do so. Posting frequency will continue to be one article per month. Although it rarely happens, I do not want to be working on an investment idea and have the stock price drastically increase before I post about it on the blog. If I happen to have invested in three new companies over one week, subscribers should not have to wait three months to learn about them all. Of course, and this is very important, none of my ideas are investment recommendations. The fact that I post my trades like a diary of sorts should not exempt anyone from doing their own due diligence.

I am looking forward to seeing how these changes play out. If you have any comments or suggestions, I would love to hear them.

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Current portfolio and main changes