Concentrated mega cap growth portfolio with strong historical returns and moderate defensive tilt
Report created on Mar 27, 2026Risk 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.
Positions
-
WM Walmart Inc. Common Stock
WMT - US9311421039 25.08% -
CO Costco Wholesale Corp
COST - US22160K1051 18.26% -
GE GE Aerospace
GE - US3696043013 13.88% -
TM T-Mobile US Inc
TMUS - US8725901040 13.48% -
TS Taiwan Semiconductor Manufacturing
TSM - US8740391003 11.70% -
AV Broadcom Inc
AVGO - US11135F1012 10.15% -
ME Meta Platforms Inc.
META - US30303M1027 7.45%
The structure here is very focused: seven individual mega‑cap stocks make up 100% of the portfolio, with the largest position (Walmart) over 25% and the top three names driving just over half of total risk. This kind of concentration can supercharge performance when the selected companies do well, as the results show, but it also ties outcomes closely to a small group of businesses. In practical terms, this behaves more like a compact “best ideas” stock basket than a broad market portfolio. Anyone using a setup like this usually wants to be very sure they’re comfortable tracking the fortunes of a handful of large companies over time.
Growth
Historically, performance has been outstanding: $1,000 grew to about $8,903, with a compound annual growth rate (CAGR) of 24.5%. CAGR is the “average speed” of growth per year, smoothing out the bumps. That’s roughly 10 percentage points a year above the US market and about 13 above the global market, while also showing a smaller max drawdown at about -25% versus roughly -34% for the benchmarks. Max drawdown is the worst peak‑to‑trough fall over the period. This combination of higher returns and shallower worst loss is rare, but it’s all backward‑looking; markets change, so past outperformance can’t be assumed going forward.
Asset classes
- Stocks 100%
All capital is in stocks, with zero allocation to bonds, cash, or alternative assets. That pure‑equity profile fits a growth‑oriented mindset and lines up with your “Growth Investors” risk classification and 5/7 risk score. Equities historically deliver higher long‑term returns than bonds but can swing much more in the short term. Many broad “balanced” portfolios include bonds or cash to smooth the ride, especially for shorter time horizons. A 100% stock allocation generally suits someone focused on long‑term wealth building who can tolerate meaningful ups and downs without needing to tap the funds in the near future.
Sectors
- Consumer Staples 43%
- Technology 22%
- Telecommunications 21%
- Industrials 14%
Sector exposure is quite distinctive: a heavy tilt to consumer staples at 43%, then technology at 22%, telecom at 21%, and industrials at 14%. That’s more defensive than a typical market index, which usually has a larger tech and financial footprint and a smaller staples slice. Consumer staples often provide steadier demand through economic cycles, which can help cushion drawdowns. At the same time, significant telecom and tech exposure keeps growth potential in the mix. This blend can behave differently from the broader market, potentially holding up better in recessions but lagging if highly cyclical or speculative areas lead a rally.
Regions
- North America 88%
- Asia Emerging 12%
Geographically, about 88% of exposure is in North America and 12% in emerging Asia via Taiwan Semiconductor. That’s somewhat similar to many US‑based portfolios, which often lean heavily toward domestic mega caps. The benefit is familiarity, strong rule of law, and exposure to globally dominant companies, especially in consumer and tech‑related areas. The trade‑off is that results are closely tied to North American economic and policy conditions. A moderate slice in emerging Asia adds a growth engine and some diversification, but not enough to meaningfully reduce home‑region concentration if North American markets go through a tough patch.
Market capitalization
- Mega-cap 100%
All holdings are mega‑cap companies, meaning very large firms with substantial revenues, global footprints, and typically strong market recognition. Mega caps often have more stable access to capital, diversified business lines, and deep management benches, which can support the portfolio’s relatively modest drawdowns. On the downside, they may grow more slowly than smaller, nimbler firms in strong bull markets, and their valuations can be pushed higher when many investors crowd into “quality” or “safe” large names. A pure mega‑cap stance keeps things familiar and lower‑risk than small caps, but it does mean missing out on size‑related growth opportunities.
Factors
The factor profile is notable for a high tilt toward low volatility (62%), which aligns with the relatively shallow max drawdown versus benchmarks. Factor exposure describes how much a portfolio leans into characteristics like value, size, or momentum that academic research links to returns. Here, value and size scores are low, meaning a tilt away from cheap or smaller companies, and momentum is also low, indicating less focus on recent winners. Quality sits around neutral, suggesting market‑like exposure to strong balance sheets and profitability. Overall, this leans toward large, steadier names rather than aggressive, high‑beta growth or deep value plays.
Risk contribution
-
Walmart Inc. Common Stock
Weight: 25.08% 18.7% -
GE Aerospace
Weight: 13.88% 16.6% -
Costco Wholesale Corp
Weight: 18.26% 15.5% -
Broadcom Inc
Weight: 10.15% 15.0% -
Taiwan Semiconductor Manufacturing
Weight: 11.70% 14.4% - Top 5 risk contribution 80.2%
Risk contribution shows how much each stock drives the portfolio’s overall ups and downs, which can differ from simple weights. For example, Broadcom is just over 10% of capital but nearly 15% of total risk (risk/weight 1.48), so it punches above its weight in volatility. GE Aerospace and TSMC also contribute more risk than their allocations would suggest. In contrast, Walmart and Costco contribute less risk than their weights, acting as stabilizers. The fact that the top three holdings make up about 51% of total risk is meaningful; tweaking those positions would have the biggest impact on smoothing the ride if desired.
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.
On the risk–return chart, the current portfolio has a Sharpe ratio of 1.19, below both the minimum variance portfolio (1.23) and the optimal portfolio (1.37). The Sharpe ratio measures return per unit of risk, so higher is better for a given volatility level. The efficient frontier shows the best possible combos of risk and return using only these seven stocks but with different weights. Because the current allocation sits below that frontier, reweighting the same holdings could improve the tradeoff, either by slightly lowering risk for similar returns or nudging returns higher without a big jump in volatility. No new assets required—just sizing tweaks.
Dividends
- Broadcom Inc 0.60%
- Costco Wholesale Corp 0.50%
- GE Aerospace 0.40%
- Meta Platforms Inc. 0.40%
- T-Mobile US Inc 1.80%
- Taiwan Semiconductor Manufacturing 0.70%
- Walmart Inc. Common Stock 0.60%
- Weighted yield (per year) 0.71%
The total dividend yield sits at about 0.71%, with individual yields mostly under 1% except for T‑Mobile around 1.8%. That’s on the low side compared with many income‑focused portfolios, but it’s consistent with a growth orientation where companies reinvest more cash into expansion rather than paying it out. Dividends still matter because they add a steady component to total returns and can soften the psychological impact of price volatility. Here, though, they’re more of a minor bonus than a core feature. Anyone needing regular cash flow would normally look for higher‑yielding assets alongside this kind of growth core.
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