Concentrated stock portfolio with two speculative holdings driving almost all of the overall risk
Report created on Apr 21, 2026Risk profile
- Secure Speculative
The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.
Diversification profile
- Focused Diversified
The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.
Positions
-
RI Rivian Automotive Inc
RIVN - US76954A1034 26.16% -
VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 23.36% -
RD Reddit, Inc.
RDDT - US75734B1008 21.41% -
NV Novo Nordisk A/S
NVO - US6701002056 20.96% -
PM Philip Morris International Inc
PM - US7181721090 8.11%
This portfolio is made up entirely of stocks, with five positions and no bonds or cash-like assets. Four individual companies account for about three-quarters of the value, and one broad stock ETF makes up the rest. The two biggest positions are early-stage, higher-uncertainty names that together exceed the weight of the diversified ETF. This structure means the portfolio behaves much more like a concentrated stock pick collection than a broad market basket. A speculative risk score of 7/7 and a moderate diversification score reflect that most outcomes will be driven by what happens to just a couple of companies, not by the wider market.
Growth
Over the measured period, $1,000 grew to about $1,973, with a compound annual growth rate (CAGR) of 38.74%. CAGR is like average speed on a long road trip, smoothing out bumps along the way. This beat both the US and global markets by around 20 percentage points per year, but came with a maximum drawdown of -43.8%, more than double the benchmarks. Max drawdown shows the worst peak‑to‑trough fall, which signals how painful a bad stretch can feel. Only eight days made up 90% of total returns, highlighting that performance relied on a handful of very strong days, a common pattern in concentrated, high-volatility portfolios.
Projection
The Monte Carlo projection runs 1,000 simulations using past behavior to estimate possible 15‑year outcomes. It shows a median result of $2,791 from $1,000, with most simulations landing between about $1,852 and $4,108, and a wide possible band from roughly $1,021 to $7,634. Monte Carlo is like running the same “movie” many times with slightly different twists, based on historical return and volatility patterns. The average simulated annual return of 8.09% is much lower than the recent realized CAGR, underlining that the backtested boom period is unlikely to repeat in a straight line. As always, these are scenarios, not promises, and real markets can behave very differently.
Asset classes
- Stocks 100%
All of the portfolio sits in one asset class: equities. That means there is full exposure to stock market ups and downs, with no offset from bonds, cash, or alternatives. Equities tend to offer higher long-term growth potential but also sharper swings, which fits the speculative risk rating. Compared with broad multi‑asset portfolios that mix different asset types, this structure concentrates risk in one economic engine: corporate earnings. The presence of a broad market ETF does provide internal diversification among many individual stocks, but at the total-portfolio level, the absence of any stabilizing asset classes means overall volatility will largely track equity cycles without much cushioning in stress periods.
Sectors
- Consumer Discretionary 28%
- Telecommunications 24%
- Health Care 23%
- Consumer Staples 9%
- Technology 7%
- Financials 3%
- Industrials 2%
- Energy 1%
- Utilities 1%
- Real Estate 1%
- Basic Materials 1%
Sector-wise, the portfolio leans heavily into consumer-focused and communications-related businesses, which together make up just over half of the exposure. Health care is also a major slice, while more traditionally defensive areas like utilities, staples beyond one tobacco holding, and real estate are small. Compared with broad benchmarks that spread weight across many sectors, this creates a tilt toward areas that can be more sensitive to sentiment, regulation, or advertising and user-growth trends. Such concentrations can boost returns when these themes are in favor, but they also mean that negative news or policy changes in those spaces can move the portfolio more than a fully sector-balanced approach.
Regions
- North America 79%
- Europe Developed 21%
Geographically, roughly 79% of the portfolio is in North America and 21% in developed Europe. This is a fairly US‑tilted profile, similar in spirit to many large global benchmarks that are dominated by US companies, and it aligns well with a US‑based investor’s home region. The European exposure is almost entirely tied to a single large health‑care name, so Europe is present but not broadly diversified across many companies or industries. While this regional split has worked well in recent years as US markets outperformed, it also means that company earnings and currencies from other global regions play only a limited role in the portfolio’s overall behavior.
Market capitalization
- Large-cap 76%
- Mega-cap 18%
- Mid-cap 5%
- Small-cap 1%
- Micro-cap 1%
By market capitalization, the portfolio is dominated by large and mega‑cap stocks, which together represent about 94% of the exposure. Mega‑caps are the market giants, and their inclusion through the broad ETF and the large established holdings helps anchor part of the portfolio in more mature businesses. There is a small slice in mid, small, and micro‑caps, but that’s not where most of the weight sits. However, market cap doesn’t always translate to risk: the highest‑beta, story‑driven positions here are not necessarily the largest global companies, yet they can still swing more than the mega‑cap names. So the “large‑cap heavy” label doesn’t automatically mean low volatility in practice.
True holdings
-
-
-
-
-
NV NVIDIA Corporation 1.50%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AA Apple Inc 1.38%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
MS Microsoft Corporation 1.02%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AM Amazon.com Inc 0.75%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class A 0.62%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
-
AV Broadcom Inc 0.54%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
- Top 10 total 82.45%
Looking through the ETF’s top holdings, there is minimal overlap with the individual stocks you hold directly. The main ETF exposures are broad US leaders like NVIDIA, Apple, Microsoft, Amazon, Alphabet, and Broadcom, each showing up as low‑single‑digit slices of the whole portfolio. Meanwhile, Rivian, Reddit, Novo Nordisk, and Philip Morris are held almost entirely as direct positions rather than also appearing prominently in the ETF layer. This lack of duplication means hidden concentration from repeated ownership of the same company is relatively limited. Still, the four stock picks dominate overall exposure, so the diversified ETF functions more as a stabilizing satellite than the core driver of portfolio behavior.
Factors
Factor exposures are estimated using statistical models based on historical data and measure systematic (market-relative) tilts, not absolute portfolio characteristics. Results may vary depending on the analysis period, data availability, and currency of the underlying assets.
Factor exposure shows very low size and high quality and yield tilts relative to a neutral 50% baseline. Factor investing looks at patterns like company size, valuation, momentum, and profitability that research links to long‑run returns. A very low size score (19%) means the portfolio leans away from smaller companies overall, despite having some speculative names; much of the weight sits in larger, established firms. High quality (68%) and high yield (67%) reflect meaningful exposure to profitable businesses with stronger balance sheets and above‑average dividends. This mix can make the portfolio behave somewhat more defensively in some downturns than a pure high‑growth, no‑profit basket, even though the headline risk rating is still very high.
Risk contribution
-
Reddit, Inc.
Weight: 21.41% 41.3% -
Rivian Automotive Inc
Weight: 26.16% 37.7% -
Novo Nordisk A/S
Weight: 20.96% 13.7% -
Vanguard Total Stock Market Index Fund ETF Shares
Weight: 23.36% 7.1% -
Philip Morris International Inc
Weight: 8.11% 0.2%
Risk contribution highlights how much each position drives the portfolio’s overall ups and downs, which can differ a lot from simple weights. Reddit and Rivian together account for about 48% of the value but nearly 79% of total risk; the top three holdings generate more than 92% of volatility. By contrast, the broad Vanguard ETF is over 23% of the portfolio but adds only about 7% of risk, and Philip Morris’s risk impact is almost negligible. This pattern is typical when a couple of volatile names sit alongside steadier holdings. It means that, day to day, the portfolio will move largely in response to news and sentiment around those two speculative stocks rather than the diversified ETF core.
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.
The efficient frontier analysis shows that the current portfolio sits well below the best risk‑return combinations available using the same holdings. The Sharpe ratio, which compares excess return to volatility, is 0.85 for the current mix versus 1.88 for the optimal reweighting and 1.46 for the minimum‑variance option. Being 27 percentage points below the frontier at the current risk level means that, historically, a different blend of these five positions could have delivered either higher expected return for similar risk or similar return with meaningfully lower volatility. This doesn’t mean the current allocation is “wrong,” just that it isn’t making the most efficient use of the ingredients already in the portfolio.
Dividends
- Novo Nordisk A/S 4.60%
- Philip Morris International Inc 3.70%
- Vanguard Total Stock Market Index Fund ETF Shares 1.10%
- Weighted yield (per year) 1.52%
The portfolio’s total dividend yield is about 1.52%, coming mostly from Novo Nordisk and Philip Morris, with a smaller contribution from the broad US ETF. Dividend yield measures cash payouts relative to price, and it can be an important component of total return, especially when prices move sideways. In this case, yield plays a secondary role: capital gains and losses from the speculative growth names will dominate outcomes. The presence of stable dividend payers does add a modest income stream and a different return driver than pure price appreciation. But overall, this remains a growth‑ and volatility‑driven portfolio rather than a dividend‑focused one.
Ongoing product costs
- Vanguard Total Stock Market Index Fund ETF Shares 0.03%
- Weighted costs total (per year) 0.01%
Costs are impressively low, with a total expense ratio around 0.01%, driven by the Vanguard ETF’s 0.03% fee and zero ongoing charges for individual stocks. TER is the annual percentage a fund charges to cover management and operating expenses, quietly reducing returns each year. Here, the drag is minimal, which is a strong structural advantage over time. In fee terms, the portfolio is very well aligned with best practices, leaving more of any returns in the investor’s pocket. When combined with a concentrated, high‑risk setup, low costs do not reduce volatility, but they do ensure that whatever performance the holdings deliver is not heavily eroded by management fees.
What next?
Ready to invest in this portfolio?
Select a broker that fits your needs and watch for low fees to maximize your returns.
Create your own report?
Join our community!
The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.
Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.
Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.
Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.
By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.
Instrument logos provided by Elbstream.
Help us improve Insightfolio
Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey