A concentrated portfolio with heavy reliance on Berkshire Hathaway and a focus on US equities

Risk profile

  • Secure
    Speculative

The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.

Diversification profile

  • Focused
    Diversified

The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.

What type of investor this portfolio is suitable for

Balanced Investors

This portfolio suits an investor with a balanced risk profile who is comfortable with significant exposure to a single entity and the broader US market. The ideal investor likely seeks growth through equities, with a long-term horizon to withstand market volatility. A preference for established, large-cap companies indicates a desire for stability and proven performers, though the investor should be open to diversifying to manage risk effectively.

Positions

  • Berkshire Hathaway Inc
    BRK-B - US0846707026
    67.77%
  • Schwab U.S. Broad Market ETF
    SCHB - US8085241029
    10.52%
  • Schwab U.S. Dividend Equity ETF
    SCHD - US8085247976
    7.27%
  • Invesco QQQ Trust
    QQQ - US46090E1038
    4.63%
  • Microsoft Corporation
    MSFT - US5949181045
    3.96%
  • Schwab International Equity ETF
    SCHF - US8085248057
    3.23%
  • Eli Lilly and Company
    LLY - US5324571083
    2.62%

Your portfolio is highly concentrated, with 67.77% invested in Berkshire Hathaway Inc., followed by notable allocations in Schwab U.S. Broad Market ETF, Schwab U.S. Dividend Equity ETF, Invesco QQQ Trust, Microsoft Corporation, Schwab International Equity ETF, and Eli Lilly and Company. This composition demonstrates a strong bias towards financial services and technology sectors, with a predominant focus on North American equities. The heavy weighting towards a single company (Berkshire Hathaway) significantly influences the portfolio's performance and risk profile.

Growth Info

Historically, your portfolio has achieved a Compound Annual Growth Rate (CAGR) of 15.65%, with a maximum drawdown of -29.59%. This indicates a strong performance trend, albeit with periods of significant value decline. The days contributing to 90% of returns being concentrated in just 36.0 days highlights the portfolio's volatility and the impact of short-term gains. Compared to benchmarks, this performance may be attractive, but it's essential to consider the associated risk levels.

Projection Info

Using Monte Carlo simulations, we can project your portfolio's future performance under various market conditions. These simulations suggest a wide range of outcomes, with the median projection indicating an 899.7% increase. While 999 out of 1,000 simulations show positive returns, this optimistic outlook is based on historical data and should be approached with caution, as past performance is not always indicative of future results.

Asset classes Info

  • Stocks
    100%
  • Cash
    0%
  • Bonds
    0%
  • Other
    0%
  • No data
    0%

Your portfolio is exclusively invested in stocks, with 100% allocation and no presence of bonds, cash, or other asset classes. This singular focus on equities exposes you to higher volatility and risk, particularly given the concentration in specific stocks and sectors. Diversifying across different asset classes can help manage risk and smooth out returns over time.

Sectors Info

  • Financials
    71%
  • Technology
    11%
  • Health Care
    5%
  • Consumer Discretionary
    3%
  • Industrials
    2%
  • Consumer Staples
    2%
  • Telecommunications
    2%
  • Energy
    2%
  • Basic Materials
    1%
  • Utilities
    0%
  • Real Estate
    0%

The sectoral distribution shows a heavy bias towards financial services, primarily due to the large stake in Berkshire Hathaway, and technology. While these sectors have historically offered strong growth, they also come with higher volatility. The underrepresentation of sectors like utilities and real estate, which can offer stability and income, suggests an opportunity to balance the portfolio's risk and return profile.

Regions Info

  • North America
    97%
  • Europe Developed
    2%
  • Japan
    1%
  • Asia Developed
    0%
  • Australasia
    0%
  • Latin America
    0%
  • Asia Emerging
    0%
  • Africa/Middle East
    0%
  • Europe Emerging
    0%

Geographically, your portfolio is overwhelmingly allocated to North America (97%), with minimal exposure to developed Europe and Japan. This geographic concentration increases vulnerability to regional economic downturns and misses out on potential growth and diversification benefits from emerging and other developed markets.

Market capitalization Info

  • Mega-cap
    83%
  • Large-cap
    10%
  • Mid-cap
    5%
  • Small-cap
    1%
  • Micro-cap
    0%

The focus on mega-cap (83%) and big-cap (10%) companies aligns with a preference for stability and proven performance. However, this emphasis limits exposure to medium, small, and micro-cap companies, which can offer higher growth potential albeit with increased risk. Diversifying across different market capitalizations can enhance return potential and risk management.

Dividends Info

  • Eli Lilly and Company 0.60%
  • Microsoft Corporation 0.70%
  • Invesco QQQ Trust 0.50%
  • Schwab U.S. Broad Market ETF 1.10%
  • Schwab U.S. Dividend Equity ETF 3.90%
  • Schwab International Equity ETF 2.40%
  • Weighted yield (per year) 0.54%

Your portfolio's dividend yield, while diversified across holdings, averages to 0.54%. The Schwab U.S. Dividend Equity ETF provides the highest yield at 3.90%, contributing to income generation. Considering your portfolio's growth-oriented nature, this focus on dividends is balanced, but there's room to optimize income alongside growth strategies, particularly for long-term financial goals.

Ongoing product costs Info

  • Invesco QQQ Trust 0.20%
  • Schwab U.S. Broad Market ETF 0.03%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Schwab International Equity ETF 0.06%
  • Weighted costs total (per year) 0.02%

The portfolio's overall expense ratio is low, with the highest cost attributed to the Invesco QQQ Trust at 0.20% and the lowest to the Schwab ETFs. This cost efficiency supports better long-term performance by minimizing drag on returns. Continuing to prioritize low-cost investments will enhance net returns over time.

Risk vs. return

This chart shows the Efficient Frontier, calculated using your current assets with different allocation combinations. It highlights the best balance between risk and return based on historical data. "Efficient" portfolios maximize returns for a given risk or minimize risk for a given return. Portfolios below the curve are less efficient. This is informational and not a recommendation to buy or sell any assets.

Considering the Efficient Frontier, your portfolio's current allocation suggests there might be opportunities to optimize the risk-return ratio. By adjusting the allocation between the current assets, you could potentially achieve a more efficient portfolio. This optimization does not necessarily mean achieving maximum diversification but rather improving the balance between risk and return based on historical performance data.

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