High Concentration in Utilities with Growth Focus and Moderate Risk in US-Centric Portfolio

Risk profile

  • Secure
    Speculative

The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.

Diversification profile

  • Focused
    Diversified

The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.

What type of investor this portfolio is suitable for

Growth Investors

This portfolio is suitable for a growth-oriented investor who is comfortable with moderate risk and a concentrated position. The ideal investor seeks long-term capital appreciation and is willing to withstand market volatility in pursuit of higher returns. With a focus on equities, this investor should have a longer investment horizon, allowing time to ride out market fluctuations. They are likely to prioritize growth over income and may have a strong belief in the potential of specific sectors or companies.

Positions

  • Portland General Electric Co
    POR - US7365088472
    70.71%
  • Netflix Inc
    NFLX - US64110L1061
    4.27%
  • Meta Platforms Inc.
    META - US30303M1027
    4.03%
  • Tesla Inc
    TSLA - US88160R1014
    3.88%
  • Microsoft Corporation
    MSFT - US5949181045
    3.81%
  • NVIDIA Corporation
    NVDA - US67066G1040
    3.42%
  • Amazon.com Inc
    AMZN - US0231351067
    3.21%
  • Alphabet Inc Class A
    GOOGL - US02079K3059
    2.59%
  • Crowdstrike Holdings Inc
    CRWD - US22788C1053
    2.08%
  • Palantir Technologies Inc
    PLTR - US69608A1088
    2.00%

The portfolio is heavily concentrated in a single stock, Portland General Electric Co, which makes up over 70% of the holdings. This lack of diversification increases risk as the portfolio's performance is heavily dependent on the fortunes of this one company. A balanced portfolio typically includes a mix of different sectors and stocks to spread risk. Consider diversifying by reducing the reliance on this single stock and including a broader range of investments. This could help mitigate risks and enhance overall returns.

Growth Info

Historically, the portfolio has performed well with a compound annual growth rate (CAGR) of 19.49%. However, it has also experienced a significant maximum drawdown of 27.71%, indicating volatility. High returns are often accompanied by higher risks, and this portfolio is no exception. To maintain strong performance while managing risk, it's crucial to periodically review the portfolio's composition and adjust it according to changing market conditions and personal risk tolerance. Balancing risk and return is key to achieving long-term success.

Projection Info

Using a Monte Carlo simulation, which models potential future outcomes by running numerous scenarios, the portfolio shows a promising median return of 3,021.6%. This suggests strong potential for future growth, but with a risk of significant variability. The simulation indicates that 977 out of 1,000 scenarios result in positive returns, showcasing a generally optimistic outlook. However, given the inherent uncertainties in such projections, consider maintaining a diversified approach to balance potential gains with acceptable risk levels. Diversification remains a critical component of long-term investment success.

Asset classes

  • Stocks
    100%

The portfolio is entirely composed of common stocks, which means it is fully exposed to equity market risks. While stocks can offer high returns, they also come with higher volatility compared to other asset classes like bonds or real estate. To reduce risk, consider incorporating different asset classes into the portfolio. This could involve adding bonds or other fixed-income securities, which can provide stability and income. A more balanced asset allocation could help smooth out returns and provide a buffer against market fluctuations.

Sectors

  • Utilities
    71%
  • Technology
    11%
  • Telecommunications
    11%
  • Consumer Discretionary
    7%

Sector allocation shows a heavy emphasis on the utilities sector, which accounts for over 70% of the portfolio. This concentration exposes the portfolio to sector-specific risks, such as regulatory changes or shifts in energy prices. A more diversified sector allocation could help mitigate these risks and improve resilience against sector downturns. Consider increasing exposure to other sectors, such as technology or consumer goods, to create a more balanced portfolio. This approach can enhance overall stability and reduce the impact of sector-specific events.

Regions

  • North America
    100%

Geographically, the portfolio is entirely invested in North American stocks, which limits exposure to international markets. While the US market has been a strong performer, diversification across different regions can provide additional growth opportunities and reduce reliance on a single market. Global diversification can help mitigate risks associated with economic downturns or geopolitical events in one region. Consider exploring international investments to achieve a more globally diversified portfolio, which can enhance long-term growth potential and reduce overall risk.

Dividends

  • Alphabet Inc Class A 0.20%
  • Meta Platforms Inc. 0.30%
  • Microsoft Corporation 0.50%
  • Portland General Electric Co 4.10%
  • Weighted yield (per year) 2.94%

The portfolio's dividend yield stands at 2.94%, with Portland General Electric Co contributing significantly at 4.1%. While dividends provide a steady income stream, the portfolio's yield is primarily driven by one stock. Diversifying the dividend sources could improve income stability and reduce reliance on a single company's performance. Consider adding dividend-paying stocks from different sectors to enhance income resilience. This strategy can provide a more reliable income stream and contribute to total returns, especially during periods of market volatility.

Risk vs. return

This chart shows the Efficient Frontier, calculated using your current assets with different allocation combinations. It highlights the best balance between risk and return based on historical data. "Efficient" portfolios maximize returns for a given risk or minimize risk for a given return. Portfolios below the curve are less efficient. This is informational and not a recommendation to buy or sell any assets.

The portfolio is close to the efficient frontier, indicating a good balance between risk and return. However, it's not yet optimal, with room for improvement in expected returns and risk levels. To optimize, consider adjusting the portfolio's risk level according to personal preferences. Moving along the efficient frontier can help achieve a riskier or more conservative portfolio. For those seeking higher returns, increasing exposure to growth stocks might be an option, while those prioritizing stability could consider adding bonds or other low-risk assets.

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