The All in Stocks Portfolio is a virtual portfolio created to allow subscribers to follow my track record. 

The strategy behind it is to own a diversified collection of the best businesses I can find to be held for the long term or until the story changes. It will also be useful to gauge the analytical and investment criteria used.

In order to make this the most realistic possible, transaction costs and commissions will be accounted for in every transaction, penalizing high activity while rewarding long holding periods.   

Any change to the portfolio will be communicated to the subscribers until 12:00 on the day of its incorporation, thus giving time for subscribers to act upon such information if they wish so. 

If the communication comes after 12:00, the stock will be bought in the next day,

The price at which the stock will enter the portfolio will be the closing price of the day of buying. 

This might hinder the portfolio’s performance sometimes, but I feel that this will only happen in certain cases of microcaps or very illiquid stocks. 

PORTFOLIO MANAGEMENT

The portfolio started with a value of €100.000. This is merely an indicative value. 

I chose it because it’s a round number. It could be €10.000, €20.000 or €200.000. It doesn’t really matter as long as we are talking about “small” amounts. 

If you’re planning on investing a few millions, it might be hard for you to invest in some of the smaller and less liquid companies that I choose for the portfolio.

I don’t mind holding cash if I feel it’s the right thing to do. I don’t care much about opportunity cost if I don’t find good opportunities to deploy my capital. As Warren Buffett’s life-long business partner once said: “There are worse things than sitting on a huge pile of cash“.

I aim to hold a diversified portfolio of 10 to 20 stocks, depending on the opportunities that I find. 

Regarding the weight of each position, I’m not a huge fan of equal weight positions. If I have more conviction in one stock than in another, I will buy a bigger chunk. But I am only human and I will make mistakes. That’s why no position will be higher than 10% at cost and there will also be a diversification of industries.

 DIVIDENDS

The dividends will automatically be added to the cash.