A broadly diversified investment portfolio with a cautious risk profile and a global reach

Report created on Nov 4, 2025

Risk profile Info

3/7
Cautious
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio is well-structured, with a significant emphasis on equities (83%) and a moderate allocation to bonds (17%), indicating a balanced approach towards growth with a cushion against market volatility. The presence of both global ETFs and a major stake in Berkshire Hathaway Inc. demonstrates a strategic blend of passive and active investment styles. This diversification across asset classes and investment strategies helps in spreading risk and tapping into different growth potentials.

Growth Info

Historically, the portfolio has shown a Compound Annual Growth Rate (CAGR) of 9.53%, with a maximum drawdown of -29.32%. This performance is indicative of a well-managed risk-return trade-off, aligning with the portfolio's cautious risk classification. However, it's crucial to remember that past performance is not always indicative of future results, and the significant drawdown highlights the importance of being prepared for market downturns.

Projection Info

The Monte Carlo simulation, which runs 1,000 hypothetical scenarios to project future performance, shows a wide range of outcomes with a median increase of 214.1%. This suggests that while there is potential for substantial growth, there's also considerable uncertainty, underscoring the importance of maintaining a diversified and balanced portfolio to navigate future market conditions.

Asset classes Info

  • Stocks
    83%
  • Bonds
    17%

The portfolio's asset allocation leans heavily towards stocks, which is typical for seeking growth, but it includes a significant bond component to mitigate risk. This allocation is suitable for a cautious investor looking for growth while being mindful of volatility. The bond allocation provides a steady income stream and helps buffer against stock market fluctuations.

Sectors Info

  • Financials
    30%
  • Technology
    14%
  • Industrials
    13%
  • Consumer Discretionary
    6%
  • Health Care
    5%
  • Telecommunications
    5%
  • Consumer Staples
    3%
  • Basic Materials
    3%
  • Energy
    2%
  • Utilities
    1%
  • Real Estate
    1%

With financial services, technology, and industrials making up the bulk of the sectoral allocation, the portfolio is positioned to benefit from growth in these dynamic sectors. However, the heavy concentration in financial services (30%) may expose the portfolio to sector-specific risks. Diversifying more evenly across sectors could help reduce this risk and tap into opportunities in other areas.

Regions Info

  • North America
    37%
  • Europe Developed
    31%
  • Asia Emerging
    6%
  • Asia Developed
    5%
  • Japan
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

The geographic allocation shows a strong emphasis on developed markets, with North America and Europe accounting for the majority of the exposure. This focus on more stable, developed economies may limit exposure to higher-growth potential in emerging markets. Considering increasing the allocation to emerging markets could offer higher growth prospects, albeit with increased risk.

Market capitalization Info

  • Mega-cap
    50%
  • Large-cap
    21%
  • Mid-cap
    10%
  • Small-cap
    1%

The portfolio's concentration in mega and big-cap stocks (71%) suits its cautious profile, as these companies tend to be more stable and less volatile than smaller companies. However, this focus might limit the portfolio's growth potential during bull markets when smaller companies often outperform. A slight increase in medium to small-cap exposure could enhance growth prospects while still aligning with the portfolio's overall risk tolerance.

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, the portfolio appears to be positioned well in terms of risk-return optimization. However, there's always room for improvement. Regularly reviewing the allocation and performance of each asset class and adjusting the portfolio to stay on or near the Efficient Frontier can help in achieving the best possible risk-return ratio. This process is crucial for maintaining an optimal balance between risk and reward in line with changing market conditions and investment goals.

Ongoing product costs Info

  • iShares Core Corporate Bond UCITS 0.20%
  • iShares Core MSCI World UCITS ETF USD (Acc) EUR 0.20%
  • iShares Core MSCI Emerging Markets IMI UCITS 0.18%
  • iShares OMX Stockholm Capped UCITS 0.10%
  • Xtrackers EURO STOXX 50 UCITS ETF 1C 0.09%
  • Weighted costs total (per year) 0.14%

The portfolio's total expense ratio (TER) of 0.14% is impressively low, which is beneficial for long-term growth as lower costs translate directly into higher net returns for the investor. This cost efficiency is a strong aspect of the portfolio, particularly in the context of a cautious investment strategy where keeping expenses minimal is crucial to maximizing the compounding effect.

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