A high-stakes gamble masquerading as an investment strategy
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
Speculative Investors
This portfolio is suited for the adrenaline junkie of the investment world, someone who skydives without checking their parachute twice. It's for the investor who loves the thrill of the chase, with a high tolerance for risk and a seemingly insatiable appetite for potential high returns. This investor likely has a short-term perspective, focusing more on the sprint than the marathon, possibly overlooking the importance of planning for financial stability in the face of market volatility.
Positions
-
Rheinmetall AG
RNMBF 12.68% -
Lafargeholcim Ltd ADR
HCMLY - US43475E1055 11.78% -
iShares Core S&P 500 ETF
IVV - US4642872000 10.87% -
Fluor Corporation
FLR - US3434121022 9.96% -
Dell Technologies Inc
DELL - US24703L2025 9.06% -
BAE Systems PLC
BAESY - US05523R1077 8.15% -
Apple Inc
AAPL - US0378331005 6.34% -
Equinix Inc
EQIX - US29444U7000 5.98% -
Crown Castle
CCI - US22822V1017 5.43% -
VINCI SA
VCISF 5.43% -
American Tower Corp
AMT - US03027X1000 4.89% -
Spotify Technology SA
SPOT - LU1778762911 4.35% -
Lockheed Martin Corporation
LMT - US5398301094 2.72% -
Rolls Royce Holdings plc
RYCEY - US7757812067 2.36%
This portfolio is like a dinner plate filled with just meat and potatoes, missing the veggies, fruits, and grains needed for a balanced meal. With a hefty chunk in industrials and tech, it's like betting on two horses in a race where there are dozens more running. The glaring omission of entire sectors and asset classes tells a tale of love and neglect—love for the familiar and a stark neglect of diversification principles. It's a classic case of putting too many eggs in too few baskets.
Historical data is limited for this portfolio, which reduces the confidence in the calculated values.
Growth
If historic performance were a balloon, this portfolio's CAGR is the helium that's about to burst it. A 213.27% CAGR sounds like a fairy tale because it's just as realistic. Remember, past performance is like looking in the rearview mirror while driving forward—it doesn't account for the bumps ahead. This portfolio's max drawdown paints a more sobering picture, hinting at volatility that could give even the most seasoned investors whiplash.
Due to limited historical data, this may show extreme values that are not realistic.
Projection
The Monte Carlo simulation results for this portfolio are like predicting the weather by looking at the stars—entertaining but hardly reliable for planning a picnic. While the simulations suggest a future brighter than a supernova, reality tends to favor the laws of gravity. Betting on outcomes with such astronomical variance is more akin to playing the lottery than executing a sound investment strategy.
Asset classes
- Stocks 100%
- Cash 0%
With stocks as the only asset class in sight, this portfolio is like a monoculture farm—vulnerable to pests, or in this case, market downturns. The absence of bonds, real estate (beyond REITs), commodities, or cash equivalents means there's no buffer against stock market volatility. It's high time to introduce some crop rotation here to safeguard against a bad season.
Sectors
- Industrials 42%
- Technology 19%
- Real Estate 17%
- Basic Materials 12%
- Telecommunications 5%
- Financials 1%
- Consumer Discretionary 1%
- Health Care 1%
- Consumer Staples 1%
- Energy 0%
- Utilities 0%
The sector allocation in this portfolio screams "identity crisis." With an oversized bet on industrials and a tech fling, it's like wearing a winter coat with flip-flops. The minimalistic nods to other sectors are more a token gesture than a strategy. It's crucial to spread the love—or in this case, the investments—to avoid the cold should one of these sectors catch a flu.
Regions
- North America 55%
- Europe Developed 40%
- Unknown 4%
This portfolio's geographic distribution is like a tourist who only visits the major cities and misses out on the charm of the countryside. With a heavy bias towards North America and developed Europe, it's ignoring the emerging markets' vibrant bazaars. This lack of global diversification can lead to missing out on growth opportunities elsewhere.
Market capitalization
- Large-cap 77%
- Mid-cap 12%
- Mega-cap 11%
- Small-cap 0%
The market capitalization tilt towards big and mega caps is like only shopping at big-box stores and ignoring the local boutiques. While it might feel safer, it means missing out on the growth potential of smaller firms. A sprinkle of small caps could add some much-needed spice to this otherwise bland allocation.
Dividends
- Apple Inc 0.40%
- American Tower Corp 3.80%
- BAE Systems PLC 1.10%
- Crown Castle 5.70%
- Dell Technologies Inc 0.90%
- Equinix Inc 2.30%
- Lafargeholcim Ltd ADR 64.10%
- iShares Core S&P 500 ETF 1.10%
- Lockheed Martin Corporation 2.70%
- Rheinmetall AG 0.40%
- Rolls Royce Holdings plc 0.90%
- VINCI SA 3.60%
- Weighted yield (per year) 8.84%
The dividend strategy here is as unpredictable as a teenager's mood swings. With yields ranging from laughably low to suspiciously high, it's unclear what the goal is. Are we trying to generate income, or just picking stocks that looked good yesterday? A more coherent dividend approach could provide a steadier income stream and potentially smoother capital appreciation.
Ongoing product costs
- iShares Core S&P 500 ETF 0.03%
On a brighter note, the costs are like a well-negotiated gym membership—low enough not to regret it but present enough to remind you to use it. The low expense ratio of the ETF is commendable, suggesting at least some attention to keeping fees from eating into returns. Now, if only that prudence was applied to the rest of the portfolio's strategy.
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.
This portfolio's approach to risk vs. return optimization is like trying to balance on a tightrope while juggling chainsaws. The high risk score paired with a speculative profile suggests a thrill-seeker at the helm, but even thrill-seekers wear helmets. Steering towards a more efficient frontier could mean the difference between a memorable performance and an unforgettable disaster.
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