Portfolio

This is my portfolio of stocks, mainly US dividend paying companies with long track records, updated last 20-07-2015.

What can we say about this portfolio:

It is a work in progress
At the moment it is clearly overweight in several stocks. However working towards a 150K plus portfolio it becomes more balanced over time.

It is lacking sectors Especially dividend seeking investors will notice that some classic dividend stocks are missing from multiple sectors. An extensive explanation will be written and linked from here, in short:

  • Energy: Investing in energy stocks is betting against technological developments in the energy sector. This is a more technology and therefor volatile investment then what I prefer.
  • Tabacco stocks: Personal preference, won’t debate the profitabillity of this sector.
  • Communications: Dividend darlings AT&T and Verizon pay big dividends. In my view the future profits of these companies are to unsure with companies like Google and Facebook investing big bucks towards bringing connections to billions. It might take many years for alternatives to prosper but I can’t predict the moat of these companies for the upcoming 10 years.

Mostly US stocks
This might be a risk. Important to note is that these companies while US based mostly operate worldwide. I allready see the effect of a rising USD is compensated by lower valuations.

Not enough Diversication
Spread out over 15  20 positions this portfolio could arguably use more diversification. On the other hand a famous quote from Warren Buffet is:

“Diversification is protection against ignorance. It makes little sense if you know what you are doing.”

It is my goal to get somewhere between 20 to 30 positions in total. This will include a few positions like BRK.B and VTI which increase diversification even more. Also companies like Unilever and Proctor&Gamble are very well protected against problems with one brand or product. Of course the position in Coca Cola is extremely large, besides the fact that I have faith in this company the weight in my portfolio should drop under 10% in the next five years or so.

portfolio-piechart-07-2015

13 thoughts on “Portfolio”

  1. Hi,

    I like your portfolio profile, have you consider entering the Swiss market? Looking at good dividend yield share like Roche, Novartis which have massive potential in the future as our society is living longer and consume more and more drugs.
    And at that time after the massive drop of January, you still find shares at discounted prices!

    Cheers, RA50

  2. Thanks RA50! I haven’t looked at the Swiss market yet. Especially in the beginning I wanted to build the portfolio with ‘stalwart’ US listed multinationals. The few exceptions were the Dutch companies where I have easy access to quality information. The companies you mention are however of great quality and might be a great addition later on! You seem to almost avoid the classic US dividend growers, is there a special reason?

    Thanks for commenting, Ciao!

    1. Very understandable indeed, however it seems that the euro/dollar fluctuations are somewwhat in balance with stock prices… When the dollar would drop again, companies like KO,PG,MCD will have higher profits in USD. Not sure how this will play out over time but don’t like the idea of being limited to Dutch stocks only 🙂

      Regards!

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