Balanced portfolio with a strong focus on North America and large-cap stocks

Report created on Jul 9, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is comprised of 60% Vanguard FTSE All-World UCITS ETF and 40% Berkshire Hathaway Inc, indicating a strong inclination towards equities with a blend of global exposure and concentrated investment in a single, large-cap company. The allocation towards a globally diversified ETF and a heavyweight in the financial and technology sectors suggests an attempt to balance growth with diversification, although the significant stake in Berkshire Hathaway introduces a notable concentration risk.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 12.88%, with a maximum drawdown of -31.53%. This performance, characterized by substantial growth amidst volatility, reflects the inherent risks and rewards of a stock-heavy allocation. The days contributing to 90% of returns being limited to 20 indicates that the portfolio's performance is significantly affected by a few high-return days, underscoring the importance of staying invested through market cycles.

Projection Info

Utilizing Monte Carlo simulations, which project future performance based on historical data, the portfolio shows a wide range of outcomes. With a median projected increase of 417.2% and 993 out of 1,000 simulations resulting in positive returns, the analysis suggests a high likelihood of future growth. However, it's crucial to remember that these projections are speculative and depend heavily on past market behavior, which is not a reliable indicator of future performance.

Asset classes Info

  • Stocks
    100%

The portfolio's allocation is entirely in stocks, foregoing bonds, real estate, or other asset classes that could provide income or act as a hedge against stock market volatility. This singular focus enhances potential returns but also increases risk, particularly in market downturns.

Sectors Info

  • Financials
    51%
  • Technology
    15%
  • Consumer Discretionary
    6%
  • Industrials
    6%
  • Health Care
    6%
  • Telecommunications
    5%
  • Consumer Staples
    4%
  • Energy
    2%
  • Basic Materials
    2%
  • Utilities
    2%
  • Real Estate
    1%

Sector allocation is heavily weighted towards financial services (51%) and technology (15%), with moderate diversification across other sectors. This concentration in high-growth areas can offer substantial returns but may also expose the portfolio to sector-specific risks, such as regulatory changes or economic downturns affecting these industries disproportionately.

Regions Info

  • North America
    79%
  • Europe Developed
    9%
  • Asia Emerging
    4%
  • Japan
    4%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, the portfolio is heavily skewed towards North America (79%), with modest allocations to Europe, Asia, and other regions. This concentration benefits from the strong performance of North American markets but limits exposure to potential growth in emerging markets and diversification benefits of a more global allocation.

Market capitalization Info

  • Mega-cap
    69%
  • Large-cap
    21%
  • Mid-cap
    10%

The focus on mega (69%) and big (21%) cap stocks indicates a preference for established, large companies likely to offer stability and steady growth. However, the negligible exposure to smaller companies misses potential high-growth opportunities in these segments.

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.

Considering the Efficient Frontier, optimizing this portfolio could involve diversifying across more asset classes and reducing the heavy concentration in Berkshire Hathaway to improve the risk-return ratio. While the current allocation has performed well historically, there's room to enhance diversification without significantly sacrificing potential returns.

Ongoing product costs Info

  • Vanguard FTSE All-World UCITS ETF USD Accumulation 0.22%
  • Weighted costs total (per year) 0.13%

With a total expense ratio (TER) of 0.13%, the portfolio benefits from relatively low costs, enhancing net returns over time. Keeping costs low is crucial for long-term investment success, particularly in a portfolio focused entirely on equities.

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