High-growth tech-focused portfolio with significant concentration in leading companies

Report created on Jul 31, 2025

Risk profile Info

6/7
Aggressive
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio is heavily weighted towards technology, with top positions in NVIDIA Corporation, Berkshire Hathaway Inc., and Meta Platforms Inc., making up over 86% of the portfolio. The inclusion of Advanced Micro Devices, Nio Inc, and Intel Corporation further emphasizes its tech and growth-oriented strategy. This concentration in a few high-performing stocks, particularly within the technology sector, suggests a high-risk, high-reward approach, diverging from traditional diversification principles. The portfolio's singular focus on common stocks within a few sectors increases its vulnerability to sector-specific risks.

Growth Info

Historically, this portfolio has demonstrated a remarkable Compound Annual Growth Rate (CAGR) of 38.67%, albeit with a significant maximum drawdown of -58.91%. This performance indicates a highly volatile investment journey, where days contributing to 90% of returns were limited to just 37.0, highlighting the portfolio's reliance on short-term gains. Such a strategy, while fruitful in the past, carries substantial risks, as past performance is not indicative of future results.

Projection Info

Monte Carlo simulations offer a range of potential future outcomes, from a 5th percentile scenario of -73.3% to a more optimistic 67th percentile outcome of 1,986.1%. This wide range underscores the inherent volatility and uncertainty in the portfolio's aggressive strategy. While the simulations show a significant portion of outcomes being positive, investors should be cautious, as these projections are based on historical data and cannot guarantee future performance.

Asset classes Info

  • Stocks
    100%

The portfolio is exclusively invested in stocks, showcasing a lack of diversification across asset classes. This approach maximizes potential returns but also increases the portfolio's sensitivity to market fluctuations. Diversifying across different asset classes, such as bonds or real estate, could provide a buffer against stock market volatility, potentially leading to a more stable performance over time.

Sectors Info

  • Technology
    51%
  • Financials
    29%
  • Telecommunications
    18%
  • Consumer Discretionary
    3%

With over half of the portfolio invested in technology, followed by significant allocations to financial services and communication services, the sectoral focus is narrow. This concentration can lead to higher volatility, especially given the rapid changes and competition within the tech sector. Diversifying across a broader range of sectors could mitigate sector-specific risks and smooth out returns over time.

Regions Info

  • North America
    97%
  • Asia Emerging
    3%

The geographic allocation is heavily skewed towards North America, with a minor exposure to emerging markets in Asia. This concentration in developed markets, while potentially less volatile, limits exposure to high-growth opportunities in emerging economies. Broadening geographic diversification could capture growth in diverse economies and reduce the impact of regional downturns.

Market capitalization Info

  • Mega-cap
    95%
  • Large-cap
    5%

The focus on mega-cap and large-cap stocks, comprising 95% and 5% of the portfolio respectively, aligns with the portfolio's growth and risk profile. These companies typically offer more stability than smaller caps but can still experience significant volatility. Including a mix of mid-cap or small-cap stocks could offer higher growth potential and further diversification benefits.

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, this portfolio may not be optimized for the best possible risk-return ratio due to its heavy concentration in a few sectors and lack of asset class diversification. Adjusting the allocation to include a wider range of investments could potentially achieve a more efficient balance, enhancing returns for the level of risk taken.

Dividends Info

  • Intel Corporation 0.60%
  • Meta Platforms Inc. 0.30%
  • Weighted yield (per year) 0.07%

The portfolio's overall dividend yield is low, reflecting its focus on growth stocks, which typically reinvest earnings rather than pay dividends. For investors seeking income, incorporating stocks with higher dividend yields or other income-generating assets might offer a balanced approach to growth and income.

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