Changes in Our Portfolio?
Positioning ourselves
Hi Partner 👋
Everything is going so fast.
It has been 18 months since I’ve been running Compounding Quality full-time.
Since then:
Compounding Quality grew from 120,000 readers to 440,000 readers
We bought 16 stocks
We sold 1 stock
The Portfolio returned 41.8%
It has been an amazing journey.
And I’m convinced the best is yet to come.
In the Community, Dorian asked an amazing question:
It’s a very fair question.
Which direction are we taking now we’re almost fully invested?
Which stocks are you the most enthusiastic about right now?
And which stocks are potential candidates for the Portfolio?
Our Portfolio
In the Owner’s Manual, you can find the essence of Our Investment Philosophy.
This is the foundation on which we are building the Portfolio.
Portfolio Characteristics
✅ The portfolio will invest worldwide (developed countries only)
✅ We’ll own 15-20 stocks
✅ The portfolio is aiming to invest in the best companies in the world
✅ We won’t trade a lot. Activity and costs harm our results
✅ We won’t try to time the market (I’m way too dumb for that)
As we own 15 excellent companies right now, how many more will we add?
The answer is probably two or three.
The quality criteria we use in our investment approach are very strict.
That’s why we choose for a rather concentrated Portfolio.
Our largest position (Kelly Partner Group) weighs 12.0%.
"Diversification is protection against ignorance. It makes little sense if you know what you are doing." - Warren Buffett