A highly concentrated us stock portfolio focused on aggressive growth with notable tech exposure

Report created on Aug 19, 2024

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

This portfolio is made up of 100% stocks, with about a quarter in a broad US index ETF and the rest in a small set of individual companies. Compared to a typical growth benchmark that spreads risk over hundreds or thousands of holdings, this structure is much more concentrated and explains the “low diversity” score. That concentration can amplify both gains and losses. For someone wanting growth, keeping the broad ETF core is a strong anchor. To smooth out the ride, gradually growing the share in broad funds versus single names can help balance excitement with resilience, without changing the overall growth focus.

Growth Info

Historically, this mix has delivered a very high compound annual growth rate (CAGR) of about 35.9%. CAGR is like average speed on a long road trip: it smooths out all the ups and downs into one yearly number. This is far above broad equity benchmarks, which signals very successful stock picking and a strong bull-market tilt. But the maximum drawdown of roughly -49% shows that at one point, the portfolio nearly halved in value. That kind of drop is emotionally and financially tough. When judging results, it helps to ask whether such swings feel tolerable and, if not, consider dialing down single-stock weights.

Projection Info

The Monte Carlo analysis uses historical return and volatility patterns to simulate many possible futures. Think of it as re‑shuffling past good and bad months 1,000 different ways. The median outcome of around +3,636% over the horizon looks spectacular, and even the pessimistic 5th percentile is slightly positive. However, these simulations lean heavily on past data; if future markets behave differently, actual results can diverge a lot. Rather than focusing on the eye‑catching numbers, it’s more useful to treat them as a rough risk map and then decide if the range of potential outcomes matches your comfort level and time horizon.

Asset classes Info

  • Stocks
    100%

All holdings sit in a single asset class: equities. Equity-only portfolios can drive strong long-term growth but tend to be bumpy over shorter periods, especially during recessions or rate shocks. Broad benchmarks often mix in some defensive assets, such as bonds or cash, to cushion big falls. Sticking with 100% stock exposure keeps the upside aggressive but demands a solid stomach and long runway. For anyone finding volatility stressful, even a modest allocation to more stable assets can significantly reduce the size and frequency of drawdowns while still leaving plenty of room for long-term compounding.

Sectors Info

  • Technology
    34%
  • Industrials
    17%
  • Consumer Discretionary
    13%
  • Health Care
    12%
  • Financials
    8%
  • Consumer Staples
    6%
  • Utilities
    6%
  • Telecommunications
    3%
  • Energy
    1%

Sector-wise, technology and related growth areas dominate, with tech roughly a third of the portfolio and additional exposure from high-growth names elsewhere. Industrials, consumer cyclicals, and healthcare form meaningful secondary pillars, which is positive and more balanced than a pure tech bet. Still, big stakes in companies like Apple, NVIDIA, and Tesla make the portfolio sensitive to sentiment around innovation, interest rates, and regulation. Tech‑heavy portfolios can shine in growth-friendly environments but often get hit hard when rates rise or risk appetite fades. Gradually adding exposure to more defensive areas can help steady performance during those tougher phases.

Regions Info

  • North America
    100%

Geographically, exposure is 100% in North America, essentially the US. That lines up closely with many domestic investors’ habits and has actually been rewarding over the past decade, as US markets outperformed many other regions. However, relying solely on one country also means sharing its specific risks—policy changes, economic cycles, and currency shifts—without the offsetting benefit of other regions moving differently. Many global benchmarks spread a meaningful slice into international markets. Adding even a modest allocation abroad can introduce new growth drivers and reduce the impact of any single country’s economic and political surprises.

Market capitalization Info

  • Mega-cap
    62%
  • Large-cap
    34%
  • Mid-cap
    4%

By market cap, the portfolio leans strongly toward mega and large companies, with only a small slice in mid caps and virtually no small caps. Mega caps often bring stability, strong balance sheets, and high liquidity, which helps during market stress and aligns well with mainstream indices. At the same time, the relatively low exposure to smaller companies means less participation in potential small-cap catch‑up phases, when they sometimes outperform after downturns. Keeping the mega‑cap core is very sensible; if desired, a small deliberate tilt toward smaller companies using diversified vehicles can add another growth engine without greatly increasing idiosyncratic risk.

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 a risk‑return basis, this portfolio sits on the aggressive side, with high historical returns and deep drawdowns. The Efficient Frontier is a concept that shows the best possible trade‑off between risk and return using only your existing building blocks, just mixed in different weights. Efficiency here doesn’t mean safest; it means getting the most expected return for each unit of volatility. Given the heavy tilt to individual growth names, shifting some weight toward the broad ETF and away from the riskiest single stocks would likely move the portfolio closer to that efficient line while keeping its strong growth orientation.

Dividends Info

  • Apple Inc 0.40%
  • AbbVie Inc 2.90%
  • Bank of America Corp 1.40%
  • Carpenter Technology Corporation 0.20%
  • Nextera Energy Inc 2.80%
  • Vanguard S&P 500 ETF 1.10%
  • Waste Management Inc 1.10%
  • Walmart Inc 0.60%
  • Weighted yield (per year) 0.92%

The portfolio’s total dividend yield is under 1%, which is low compared with many income‑oriented strategies but makes sense for a growth profile. Yield is the cash you’re paid each year relative to the portfolio value. Here, returns are clearly expected to come mostly from price appreciation, aided by some steady payers like AbbVie, NextEra, Walmart, and the broad ETF. This approach suits investors focused on long-term growth over immediate cash flow. If at some point regular income becomes a bigger priority—say, approaching retirement—gradually rotating a slice of the portfolio toward higher‑yielding but still diversified holdings can support that shift.

Ongoing product costs Info

  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.01%

Costs are impressively low, especially with the Vanguard S&P 500 ETF at around 0.03% and a total TER near 0.01% when averaged across positions. Lower fees mean more of the portfolio’s return stays in your pocket, and that compounding effect adds up over decades. On the individual stock side, ongoing holding costs are essentially zero beyond trading commissions and spreads. This is a real strength and aligns nicely with best practices seen in many well‑designed portfolios. The main focus going forward isn’t about cutting costs further but about fine‑tuning diversification and risk rather than fee levels.

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