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TheMotorcycleBoy's portfolio trilemma

A helpful place to also put any annual reports etc, of your own portfolios
richfool
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Re: TheMotorcycleBoy's portfolio trilemma

#498808

Postby richfool » May 6th, 2022, 9:16 am

And don't forget (also that) big oak trees grow from small acorns.

TheMotorcycleBoy
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Re: TheMotorcycleBoy's portfolio trilemma

#499287

Postby TheMotorcycleBoy » May 8th, 2022, 2:54 pm

tjh290633 wrote:
TheMotorcycleBoy wrote:It's because the smaller ones were added more recently, and therefore they have been in my portfolio less time than others and have hence been topped up less.

I have a policy of making sure that any new share, such as those arising from demergers or a deliberate swap, are bought at median holding value, or else brought up to that level as soon as practicable.

I also have a policy and a system of topping up holdings, which focusses on those standing below median weight and with above median yields. You will find that system embodied in the HYPTUSS to be found in the Financial Software section of this site.

It might be worth your while looking at it.

TJH

Thanks TJH,

I know that you have made of success of your investing exploits, over the past several decades. Indeed advocating the system embodied in the HYPTUSS, may too work well for others on TLF.

However, I definitely would not wish to employ this methodology on a general portfolio such as mine. There is absolutely no way that I'd be happy to hold an equivalent value of a hydrogen share (e.g. CWR or ITM) as that of Microsoft or Diageo, for example. IMHO the risk/reward ratio in totally different for various stocks, so whilst most definitely not an expert in commensurate portfolio weightings, I'd still want to hold less of the stock I view as "riskier".

As a contrast to the HYPTUSS methodology I've just looked up Berkshire Hathaway's holdings from https://www.buffett.online/en/portfolio/.

APPLE INC    (COM)                              | AAPL  | 47.60%
BANK AMER CORP (COM) | BAC | 13.58%
AMERICAN EXPRESS CO (COM) | AXP | 7.49%
COCA COLA CO (COM) | KO | 7.16%
KRAFT HEINZ CO (COM) | KHC | 3.53%
MOODYS CORP (COM) | MCO | 2.91%
VERIZON COMMUNICATIONS (COM) | VZ | 2.49%
US BANCORP DEL (COM NEW) | USB | 2.15%
CHEVRON CORP | CVX | 1.36%
BANK OF NEW YORK MELLON CORP (COM) | BK | 1.27%
DAVITA HEALTHCARE PARTNERS I (COM) | DVA | 1.24%
GENERAL MTRS CO (COM) | GM | 1.06%
VERISIGN INC (COM) | VRSN | 0.98%
KROGER CO. (COM) | KR | 0.84%
CHARTER COMMUNICATIONS INC N (CL A) | CHTR | 0.75%
LIBERTY MEDIA CORP DELAWARE (COM C SIRIUSXM) | LSXMK | 0.66%
SNOWFLAKE INC (COM) | SNOW | 0.63%
AMAZON COM INC (COM) | AMZN | 0.54%
VISA INC (COM CL A) | V | 0.54%
MASTERCARD INC (CL A) | MA | 0.43%
AON PLC (COM) | AON | 0.4%
LIBERTY SIRIUS XM SERIES A | LSXMA | 0.31%
NU HOLDINGS LTD | NU | 0.3%
ACTIVISION BLIZZARD INC (COM) | ATVI | 0.29%
RESTORATION HARDWARE HOLDINGS INC (COM) | RH | 0.29%
STORE CAP CORP (COM) | STOR | 0.25%
GLOBE LIFE INC (COM) | GL | 0.18%
T-MOBILE US INC (COM) | TMUS | 0.18%
AbbVie Inc. (COM) | ABBV | 0.12%
BRISTOL-MYERS SQUIBB (COM) | BMY | 0.1%
ROYALTY PHARMA PLC (COM) | RPRX | 0.1%
STONECO LTD (COM CL A) | STNE | 0.05%
LIBERTY MEDIA CORP FORMULA ONE (COM SER C) | FWONK | 0.04%
FLOOR & DECOR HOLDINGS (COM) | FND | 0.03%
JOHNSON & JOHNSON (COM) | JNJ | 0.02%
MARSH & MCLENNAN | MMC | 0.02%
PROCTER & GAMBLE CO (COM) | PG | 0.02%
LIBERTY LATIN AMERICA LTD (COM CL A) | LILA | 0.01%
MONDELEZ INTL INC (CL A) | MDLZ | 0.01%
SPDR S&P 500 ETF TRUST | SPY | 0.01%
VANGUARD S&P 500 ETF | VOO | 0.01%
WELLS FARGO & CO NEW (COM) | WFC | 0.01%
LIBERTY LATIN AMERICA LTD (COM CL C) | LILAK | 0.00%
UNITED PARCEL SERVICE INC (CL B) | UPS | 0.00%

Here we see holding weight variations between <0.01% and 47%. I know a couple of chaps here hold BRK.A. Presumably from a different forum membership subgroup than those disparaging of my "smaller holdings" ?

Anyway, what also aroused my attention was Buffet's interest in a cloud share https://www.snowflake.com/.

Later, Matt

tjh290633
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Re: TheMotorcycleBoy's portfolio trilemma

#499297

Postby tjh290633 » May 8th, 2022, 3:27 pm

Yes, Matt, but it is not practicable for Buffett to follow an equal weighting policy. Neither is it possible for you to follow a cap weighted policy.

To my mind, if you want to put your trust in a share, you need to have a decent weighting. It doesn't have to be median value, but I would suggest that perhaps 25% of median is probably a minimum.

TJH

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Re: TheMotorcycleBoy's portfolio trilemma

#499312

Postby TheMotorcycleBoy » May 8th, 2022, 4:44 pm

tjh290633 wrote:Yes, Matt, but it is not practicable for Buffett to follow an equal weighting policy. Neither is it possible for you to follow a cap weighted policy.

To my mind, if you want to put your trust in a share, you need to have a decent weighting. It doesn't have to be median value, but I would suggest that perhaps 25% of median is probably a minimum.

TJH

Yes, that's the kind of thing I'm aiming for.

ADIDAS AG NPV REGD                          | 5885.95 | 1.90% | Median
NVIDIA CORP COM USD0.001 | 3662.16 | 1.80% |
PEPSICO INC CAP USD0.016666 | 3670.69 | 1.80% |
POLAR CAP TECH TST GBP0.25 | 3683.95 | 1.80% |
GREENCOAT UK WIND ORD GBP0.01 | 3492.51 | 1.70% |
VICTREX ORD GBP0.01 | 4787.8 | 1.70% |
VISA INC COM STK USD0.0001 | 3446.94 | 1.60% |
HALMA ORD GBP0.10 | 3804.39 | 1.50% |
MARSHALLS ORD GBP0.25 | 2832.1 | 1.50% |
LEGAL GENERAL UC ROBO GLOBAL ROBAUTO GO UCI | 3571.72 | 1.40% |
BIOVENTIX PLC ORD GBP0.05 | 3267.89 | 1.40% |
CASH | 3132.92 | 1.30% |
WALT DISNEY CO. COM DISNEY USD0.01 | 3902.79 | 1.30% |
JOHNSON JOHNSON COM USD1.00 | 2538.14 | 1.30% |
MCDONALDS CORP COM USD0.01 | 2342.86 | 1.20% |
UBS LUX FUND MSCI SWITZRLND 20/35 UCITS | 2393.92 | 1.20% |
STRIX GROUP PLC ORD GBP0.01 | 2535.56 | 1.20% |
WPP PLC ORD GBP0.10 | 2316.71 | 1.20% |
MODERNA INC COM USD0.0001 | 2398.08 | 1.20% |
BLOOMSBURY PUBLISH ORD GBP0.0125 | 2497.51 | 1.10% |
GENUIT GROUP PLC ORD GBP0.001 | 2593.68 | 1.00% |
NATIONAL GRID ORD GBP0.12431289 | 1188.86 | 0.70% |
PAYPAL HOLDINGS IN COM USD0.0001 | 2612.38 | 0.70% |
DARKTRACE PLC ORD GBP0.01 | 1556.55 | 0.60% |
STARBUCKS CORP COM USD0.001 | 1216.01 | 0.50% |
BODYCOTE PLC ORD GBP0.1727272 | 1143.4 | 0.50% |
ITM POWER ORD GBP0.05 | 799.24 | 0.20% |

This is the median holding (ADS) and the holdings below that (the middle figure in the book cost, not the current market value). So with the exception of a few, I'm not that far off. I may top up the hydrogen (ITM) again soon, or diversify for company specific risk and buy CWR (Ceres) again.

OOI I currently spend between 1100-1400 per main market purchase, and between 600-1000 for an AIM purchase. Using iWeb with their low charges (except their 1.5% FX rate) makes this fairly cost efficient.

thanks Matt

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Re: TheMotorcycleBoy's portfolio trilemma

#499313

Postby stevensfo » May 8th, 2022, 4:50 pm

richfool wrote:And don't forget (also that) big oak trees grow from small acorns.


That quote always reminds me of Frank Spencer using it when arguing with his bank manager in Some Mother's do ave 'em, and following with "So just think of me...as a little nut!" ;)


Steve


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