A focused investment strategy with Vanguard S&P 500 ETF and Berkshire Hathaway

Report created on Jul 31, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

This portfolio showcases a concentrated approach, heavily weighted towards the Vanguard S&P 500 ETF at 70% and Berkshire Hathaway making up the remaining 30%. Such a composition indicates a preference for broad market exposure through the ETF, complemented by the diversified yet selective investment approach of Berkshire Hathaway. However, this concentration in just two holdings limits diversification, making the portfolio more susceptible to specific market movements.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 14.42% and a maximum drawdown of -32.64%, the portfolio has demonstrated strong growth potential alongside significant volatility. The days contributing to 90% of returns being limited to 31 suggests that the portfolio's performance is highly dependent on specific, short-term market movements. This performance pattern underscores the importance of timing in investment decisions for such a concentrated portfolio.

Projection Info

The Monte Carlo simulation, with 1,000 iterations, indicates a wide range of potential outcomes, from a 5th percentile of 87.7% to a 67th percentile of 733.3%. This broad spread underscores the high level of uncertainty and risk associated with the portfolio's future performance. Notably, the fact that 998 out of 1,000 simulations resulted in positive returns highlights the portfolio's strong upside potential, despite its concentrated nature.

Asset classes Info

  • Stocks
    100%

The portfolio's allocation is entirely in stocks, with no diversification into other asset classes like bonds or real estate. This singular focus on equities enhances the portfolio's growth potential but also increases its risk profile, particularly in volatile or down markets. Diversifying across different asset classes can reduce risk without necessarily compromising long-term returns.

Sectors Info

  • Financials
    40%
  • Technology
    23%
  • Consumer Discretionary
    8%
  • Health Care
    7%
  • Telecommunications
    7%
  • Industrials
    6%
  • Consumer Staples
    4%
  • Energy
    2%
  • Utilities
    2%
  • Real Estate
    1%
  • Basic Materials
    1%

Sector allocation is dominated by Financial Services and Technology, comprising 63% of the portfolio. This concentration may increase vulnerability to sector-specific risks. However, it also positions the portfolio to capitalize on growth in these dynamic sectors. Diversifying across more sectors could help mitigate risks while still allowing for significant growth opportunities.

Regions Info

  • North America
    100%

The portfolio's geographic allocation is exclusively North American, missing out on potential growth and diversification benefits from developed European or Asian markets, not to mention emerging markets. This geographical concentration can expose the portfolio to regional economic and political risks, suggesting a potential area for diversification.

Market capitalization Info

  • Mega-cap
    63%
  • Large-cap
    24%
  • Mid-cap
    12%
  • Small-cap
    1%

The focus on Mega and Big cap stocks, making up 87% of the portfolio, aligns with a strategy favoring stability and lower volatility typically associated with larger, established companies. However, the minimal exposure to Medium and Small cap stocks limits opportunities for higher growth, which these segments can sometimes offer.

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 shows strong historical performance, its risk-return profile could be optimized further. Utilizing the Efficient Frontier concept could help in identifying an asset allocation that offers the highest expected return for a given level of risk. However, the current concentration limits diversification, suggesting room for improvement in optimizing the risk-return balance.

Dividends Info

  • Vanguard S&P 500 ETF 1.20%
  • Weighted yield (per year) 0.84%

The portfolio's dividend yield, while modest, contributes to its overall return. The Vanguard S&P 500 ETF's yield of 1.20% and the portfolio's total yield of 0.84% indicate a balance between growth and income. However, investors seeking higher income may consider assets with higher dividend yields or diversifying into income-focused asset classes.

Ongoing product costs Info

  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.02%

The portfolio benefits from exceptionally low costs, with a Total Expense Ratio (TER) of just 0.02%. This efficient cost structure supports better net returns over the long term, demonstrating the portfolio's effective management in minimizing expenses.

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