High Growth Tech-Focused Portfolio with Limited Diversification and Aggressive Risk Profile

Report created on Aug 13, 2025

Risk profile Info

6/7
Aggressive
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

This portfolio is heavily concentrated in the technology and financial services sectors, with all investments in common stocks. The allocation is split evenly among six companies, with a slightly smaller stake in Alphabet Inc. This uniform distribution across a handful of stocks, all within a single asset class, indicates a strategy focused on high growth potential but comes with significant concentration risk. The lack of diversity across asset classes and sectors could expose the portfolio to higher volatility.

Growth Info

Historical performance showcases a remarkable Compound Annual Growth Rate (CAGR) of 30.30%, though it's accompanied by a substantial maximum drawdown of -55.26%. These figures underscore the portfolio's aggressive stance, capable of delivering substantial returns but at the risk of considerable losses. The fact that 90% of returns came from just 12 days highlights the portfolio's reliance on short, sharp gains, which may not be sustainable or predictable over the long term.

Projection Info

Monte Carlo simulations, using historical data to project future outcomes, suggest a wide range of potential performance, from a 70.6% loss to over a 2,274.0% gain. While the majority of simulations (857 out of 1,000) predict positive returns, the significant spread underscores the high risk and potential reward of this aggressive strategy. However, it's crucial to remember that these projections are speculative and depend heavily on past market conditions repeating themselves.

Asset classes Info

  • Stocks
    100%

The portfolio's allocation is entirely in stocks, eschewing bonds, real estate, commodities, or other asset classes that could provide diversification benefits. While stocks are known for their growth potential, this singular focus increases the portfolio's sensitivity to market swings, particularly within the sectors it's concentrated in.

Sectors Info

  • Financials
    45%
  • Telecommunications
    25%
  • Consumer Discretionary
    15%
  • Technology
    15%

The concentration in financial services (45%), communication services (25%), consumer cyclicals (15%), and technology (15%) sectors mirrors the portfolio's aggressive growth strategy. However, this focus also ties the portfolio's performance closely to the fortunes of these sectors, potentially missing out on opportunities in other areas of the economy or in defensive sectors that could offer stability during downturns.

Regions Info

  • North America
    100%

With 100% of assets allocated in North America, the portfolio lacks geographic diversification. This concentration in a single region can amplify risks related to local economic downturns, regulatory changes, or geopolitical events. Expanding into international markets could provide a buffer against such risks and tap into growth opportunities elsewhere.

Market capitalization Info

  • Large-cap
    45%
  • Mega-cap
    40%
  • Mid-cap
    15%

The mix of big (45%), mega (40%), and medium (15%) market capitalization stocks indicates a preference for established companies, likely chosen for their perceived stability and growth potential. However, the absence of small-cap investments may limit exposure to high-growth opportunities in emerging companies and sectors.

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.

Click on the colored dots to explore allocations.

While the portfolio has demonstrated impressive growth, its risk-return profile may not be optimized. Using the Efficient Frontier model could identify a mix of investments that achieves the best possible return for a given level of risk. This might involve diversifying across more asset classes, sectors, or geographies to reduce volatility without significantly compromising potential returns.

Dividends Info

  • Alphabet Inc Class A 0.40%
  • Meta Platforms Inc. 0.30%
  • Weighted yield (per year) 0.08%

The portfolio's dividend yield is low, with Alphabet and Meta contributing to a total yield of just 0.08%. This reflects the portfolio's growth orientation, as companies in growth sectors often reinvest profits rather than distribute them as dividends. While this can lead to higher capital appreciation, it also means investors shouldn't expect significant income from their investments.

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