Paper portfolio challenge- Part 1

Hello everyone, this video is talking about my retirement portfolio that I believe they will compound my assets optimally.

This portfolio is suitable for the following investor:

i) Want to sleep well at night as aggressive market monitoring is not required

ii) Low risk- if any of this company go burst, this means the whole sector is game over already.

iii) Manage to beat the bank interest, CPF or even market consistently. I am looking at an average of 15-20% annual return per year over 10 years.

I also believe that they will be able to make it during the bear market, while also manages to hit new high or generate good returns after the market reverses or in a bull market.

In addition, for a well-diversified portfolio, I think that a portfolio consists of 8-12 stocks are good enough. If we have too many stocks, it will be very difficult for us to monitor each of them. It would be better just buy an ETF instead.

Here are my portfolio for the retirement, and their respective sectors. To make it simpler, I allocate each stock an equal amount of weightage, with 12.5% each.

$Thermo Fisher Scientific (TMO.US)$ $Microsoft (MSFT.US)$ $Alphabet-A (GOOGL.US)$ $Taiwan Semiconductor (TSM.US)$ $Costco (COST.US)$ $Apple (AAPL.US)$ $UnitedHealth (UNH.US)$ $Berkshire Hathaway-B (BRK.B.US)$

By the way, although this is a paper portfolio challenge, I would say that these are the real stocks that I am holding in my real money account.

This is the sector allocation:

You may find that I still prefer technology, which consists of 37%. Communication service ( $Alphabet-A (GOOGL.US)$ ) can be considered within technology sector as well. Healthcare and consumer defensive sectors are relatively defensive, consists of 38%. $Berkshire Hathaway-B (BRK.B.US)$ is for value stock allocation, which consists of 13% of my portfolio.

Why I prefer a portfolio with higher weightage of technology?

1st: Technology is creating future. And stock market is about Future.

2nd: Check the return of the $Invesco QQQ Trust (QQQ.US)$ VS $SPDR S&P 500 ETF (SPY.US)$ and $SPDR Dow Jones Industrial Average Trust (DIA.US)$ as general for the last 10 years. The return is generally higher.

Next, these companies must fulfill the following 5 basic criteria:

1. Manage to generate profit consistently- We want the company to generate money for us!
2. Healthy debt profile- so, the company will not go bankrupt!
3. Strong moat- It is to ensure the company will be staying competitive and do not need to enter price war.
4. Big cap- We do not want our hard earned money to be easily manipulated by a small group of people, right?
5. Long term up-trend: I think everyone will agree that trend is our best friend!

In part 2, I will use vidoe to show how I use the above criteria to evaluates the stocks in my portfolio.
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Stay tune!

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JM investor

learn investing in my YouTube channel at "JM investment journal"

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