Making the most out of Star Institution (SI) by cloning them. (Example 1)
First and foremost, I would like to thank to the 50+ supporters and participants who have voted for an example
, and because of your loves and likes, we shall go through an example in today's discussion. ![]()
So here we go! ![]()
We will select 8 as the number of stocks that we are willing to trade.
We will select $Apple(AAPL.US$ , $Bank of America(BAC.US$ , $Coca-Cola(KO.US$ and $Moody's(MCO.US$ as our favorite stocks. The price is 179.45, 44.52, 56.28 and 397.75 as of 10 Dec 2021 in USD.
This is 50% of the total number of stocks we have selected in Step 1.
We will be investing USD $12,000 on our SI portfolio.
We have found the following SI that we are familiar with.
Berkshire Hathaway Inc.
Soros Capital Management LLC.
Dimensional Fund Advisors L.P.
Temasek Holdings (Private) Limited.
Berkshire Hathaway Inc.
Soros Capital Management LLC.
Dimensional Fund Advisors L.P.
Temasek Holdings (Private) Limited.
Also, in the Berkshire Hathaway Inc. top 8 holdings list, it has all the favourite stocks that we want.
$Apple(AAPL.US$ *, 179.45, 46.77%
$Bank of America(BAC.US$ *, 44.52, 13.21%
$American Express(AXP.US$ , 167.03, 7.44%
$Coca-Cola(KO.US$ *, 56.28, 6.61%
$The Kraft Heinz(KHC.US$ , 34.15, 3.27%
$Moody's(MCO.US$ *, 397.75, 2.88%
$BYD COMPANY(01211.HK$ , 289.8, 2.45%
$Verizon(VZ.US$ , 50.19, 2.34%
Total: 84.97% of SI portfolio
Cost: 1219.17
Cost: 1219.17
* favourite stocks as in step 2, and the first number is the stock price as of 10 Dec 2021 while the second number represent the stock weightage in the portfolio.
Thus, we shall select Berkshire Hathaway Inc portfolio to be cloned.
Berkshire Hathaway Inc. (Yes
)
Soros Capital Management LLC. (No)
Dimensional Fund Advisors L.P. (Yes
)
Temasek Holdings (Private) Limited. (Yes
)
Soros Capital Management LLC. (No)
Dimensional Fund Advisors L.P. (Yes
Temasek Holdings (Private) Limited. (Yes
A quick check shows that there is no restatement for the past 5 years from Berkshire Hathaway Inc.
Using the magic formula:
[ (Stock weightage in SI portfolio / Total weightage of trimmed SI portfolio) x our budget (Step 3) ] / current Stock price. Each result will be round down to the nearest integer.
[ (Stock weightage in SI portfolio / Total weightage of trimmed SI portfolio) x our budget (Step 3) ] / current Stock price. Each result will be round down to the nearest integer.
We will buy the following number of stocks
$Apple(AAPL.US$ , 36 stocks
$Bank of America(BAC.US$ , 41 stocks
$American Express(AXP.US$ , 6 stocks
$Coca-Cola(KO.US$ , 16 stocks
$The Kraft Heinz(KHC.US$ , 13 stocks
$Moody's(MCO.US$ , 1 stocks
$BYD COMPANY(01211.HK$ , 1 stocks
$Verizon(VZ.US$ , 6 stocks
Now, we shall place our trades in the $Futu Holdings Ltd(FUTU.US$ MooMoo apps to clone the SI portfolio and turn it to become our SI portfolio.
That's all for the example. Please give a like
to show your support, and do vote if you will be cloning any SI portfolio in the next 3 months.
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Mars Mooo OP :![](https://emoticon.futunn.com/rich_big_face/91.png)
Mars Mooo OP : The main post can be view from here.![undefined [undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)
https://www.moomoo.com/community/feed/107433033793542
Mars Mooo OP : The list of SI can be found through 'Quotes' - 'Explore' - 'Star Institutions'.![undefined [undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)
Evelynne : thanks for your sharing
Mars Mooo OP Evelynne : Evelynne, it was my pleasure.![undefined [undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)
![undefined [undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)
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Mars Mooo OP Evelynne :![](https://emoticon.futunn.com/rich_big_face/127.png)