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Chris Lau

DIY Case Study: Diversified Portfolio - Jan 12, 2018

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From the 8 sectors in the S&P 500 $SPY, pick only the top companies so:

  • Technology: $GOOGL, $MSFT, $FB
  • Basic Materials: $XOM, $CVX, $SLB
  • Services: $AMZN, $WMT, $DIS/ $CMCSA, $COST
  • Health Care: $JNJ, $PFE,$MRK
  • Financial : $JPM, $WFC, $BRK, $BAC/ $C/ $V
  • Consumer Goods: $AAPL, $KO/$PEP/$PG
  • Industrial Goods: $GE, $MMM,$HON/$BA
  • Utilities : $NEE,$DUK,$D

Those holdings collectively provide the diversification. Of the picks, should the investor include $GE? Downside is still high and picking the bottom may prove too early.

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    Quantamize
    How do you propose to manage idiosyncratic risk (company risk)?
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