When this portfolio is fully invested, it contains 20-25 stocks. We seek out the fastest growingemerging stocks in the world today. These positions are equally weighted within the portfolio. These stocks must also have both excellent valuation and momentum characteristics.
These are young companies that are hoping to grow up to be big companies some day.
This portfolio is best suited for Very Aggressive Growth Investors that have a time horizon of at least 3-5 years. This portfolio is made up of mostly small and micro-cap stocks that we think have big upside potential. This is the riskiest of our growth
This is an actively managed portfolio. We keep a shorter leash on these stocks to protect on the downside, but we seek long-term capital gains if possible.
We will also do our best to protect this portfolio from the next recession and bear market. We cannot guarantee anything, but we will raise cash and employ inverse index or sector ETF’s when we feel that the U.S. economy is finally headed into a recession.
We cannot protect investors from normal sell-offs (5-20%) along the way. These are secondary reactions within a Primary Trend. There have been many such sell-offs during the last ten years, but during that time, the S&P 500 has gone from 660 to over 4,000. Every sell-off over the last ten years has been a buying opportunity.
We will do some selling and raise cash during short-term sell-offs as a precautionary measure. We do have a line-in-the-sand on all of our holdings. While extremely important, this protection could cost you some performance over the long haul, however. That is the trade-off for having such protection.
This portfolio was started on March 31. 2019. Year by year results can be found the weekly Best Stocks Now Newsletter.