My model portfolio is an equally-weighted version of my personal portfolio, the ideas behind which I publish on this website, and on the buy-side investment community, SumZero. The rules governing my portfolio simple:
- The security must be publicly listed and, if a stock, have a market capitalisation of at least $100 million.
- For stocks and corporate bonds, after making the appropriate accounting adjustments to the financial statements, I use my stock rating or credit rating methodology to determine if the security is very attractive or attractive. If so, it goes into the model portfolio.
- The model portfolio is equal-weighted to make it easier for the reader to follow the success of each idea.
- If the stock or corporate bond reaches a neutral rating, I assess the economics of the business against that of its peers and the rest of the market, to see if I can find a better risk/reward proposition, otherwise, I close the position.
- The performance of the portfolio is measured against that of the S&P 500, depending on which is the greater.
The portfolio at present is extremely concentrated, as the pie chart below shows, with a total return average and annualised return of over 20%, as of the end of August 2026.
Performance is assessed at the end of every quarter using SumZero's algorithm. Readers who are members of SumZero can assess the current returns there.