A balanced yet concentrated portfolio with high exposure to financial services and North America

Report created on Aug 20, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

The portfolio is evenly split between Berkshire Hathaway Inc. and the Dimensional U.S. Equity ETF, resulting in a unique blend of direct stock ownership and diversified equity exposure through an ETF. This structure leans heavily on the performance of a single company alongside a broader market approach, which is an interesting strategy but raises concerns about concentration risk. The diversification score reflects a lower diversity, primarily due to the 50% allocation to a single stock.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 13.46%, with a maximum drawdown of -23.93%. This performance is notable, considering the portfolio's concentrated nature. The days contributing to 90% of the returns being limited to just 15.0 highlights the impact of significant market movements on portfolio performance. While past performance is impressive, it's critical to remember that it doesn't guarantee future results.

Projection Info

Monte Carlo simulations, which use historical data to project potential future outcomes, suggest a wide range of possibilities for this portfolio. With 995 out of 1,000 simulations showing positive returns and a median projected increase of 483.4%, the forward-looking outlook appears robust. However, the reliance on historical data means these projections cannot account for unforeseen market shifts or changes in the underlying companies' fundamentals.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely invested in stocks, with no allocation to other asset classes like bonds or real estate. This allocation supports a growth-oriented strategy but also exposes the portfolio to higher volatility and risk, especially given the stock market's susceptibility to economic cycles. Diversifying across different asset classes could provide a buffer against stock market downturns.

Sectors Info

  • Financials
    57%
  • Technology
    17%
  • Consumer Discretionary
    6%
  • Telecommunications
    5%
  • Industrials
    5%
  • Health Care
    5%
  • Consumer Staples
    3%
  • Energy
    2%
  • Utilities
    1%
  • Basic Materials
    1%

Sector allocation is heavily skewed towards financial services, followed by technology and a smattering across other sectors. This concentration in financial services, largely due to Berkshire Hathaway's business nature, ties the portfolio's performance closely to the health of the financial sector. While the technology allocation offers some growth potential, the limited representation of other sectors could mean missed opportunities in areas like healthcare or consumer goods.

Regions Info

  • North America
    100%

With 100% of assets allocated in North America, the portfolio lacks geographic diversification. This concentration in a single region can amplify risks related to local economic conditions, regulatory changes, or currency fluctuations. Expanding into other developed or emerging markets could provide exposure to different growth dynamics and reduce potential regional risks.

Market capitalization Info

  • Mega-cap
    71%
  • Large-cap
    16%
  • Mid-cap
    9%
  • Small-cap
    3%
  • Micro-cap
    1%

The focus on mega and big-cap companies aligns with a more conservative approach within the equity space, potentially offering stability and resilience during market fluctuations. However, the minimal exposure to medium, small, and micro-cap stocks limits the portfolio's ability to capture the higher growth potential often found in smaller companies.

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.

Based on the Efficient Frontier analysis, there might be room to optimize the risk-return ratio of the portfolio. While the current allocation has performed well historically, adjusting the balance between the two holdings or introducing new assets could potentially offer a better risk-adjusted return. However, any optimization should consider the investor's risk tolerance and investment goals.

Dividends Info

  • Dimensional U.S. Equity ETF 1.00%
  • Weighted yield (per year) 0.50%

The overall dividend yield of 0.50% suggests a modest contribution to total returns from dividends. While the portfolio's growth has primarily been driven by capital appreciation, dividends can provide a steady income stream and may offer some downside protection in volatile markets. Considering higher dividend-yielding investments could enhance income without significantly altering the portfolio's risk profile.

Ongoing product costs Info

  • Dimensional U.S. Equity ETF 0.09%
  • Weighted costs total (per year) 0.04%

The portfolio benefits from relatively low costs, with a total expense ratio (TER) of 0.04%. Low costs are crucial for long-term performance, as they directly enhance net returns. This aspect of the portfolio is well-optimized, and maintaining a focus on cost efficiency in future investment decisions will continue to support wealth accumulation.

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