My Portfolio Strategy: A Balanced Approach to Growth and Risk

I have divided mine into two broad categories:

1. Core/Long-Term Portfolio
2. Satellite Portfolio

Here’s how I approach these categories and what I aim to achieve with them:

Core Portfolio

This part of my portfolio focuses on mid-to-long-term bets, including long-term ETFs and individual stocks.
Thesis:

1. Aim for a return of 20-25% CAGR over the next 5-8 years
2. Pick simple assets like Nifty 50 index ETFs
3. Avoid trying to time the market; buy at good valuations and hold
4. Be okay with day-to-day volatility and avoid checking daily
5. Add/accumulate on dips when prices and earnings align
6. Rebalance annually and make tough decisions when required
7. Allocate around 60% of the portfolio to this core/long-term bucket
8. Focus on futuristic sectors rather than currently trending ones

Satellite Portfolio

This bucket is for high-risk/high-reward plays and tactical investments.
Thesis:

1. Aim for >25% CAGR returns in bull markets and ~15% in bear/sideways markets
2. Take risky bets and don’t shy away from contra plays
3. Take advantage of market fear by buying beaten-down assets
4. Rotate capital into beaten-down sectors or short-term bullish opportunities
5. Leverage volatility—sell after a 20% rise and buy again on dips
6. Actively manage this portfolio on a weekly basis
7. Consider fundamentally compromised assets if there’s a sentimental play
8. Attempt to time the market using macros and geopolitical factors
9. Maintain cash reserves to capitalize on juicy opportunities
10. Allocate around 40% of the portfolio, including cash positions

Reflection on Progress So Far

What’s working well:

1. Picking assets at the right time has worked okay so far
2. I’m happy with the level of detail I find to make informed decisions
3. My sector rotation strategy is on track
Challenges I’m working on:
1. Exiting stocks at the right time is an area I’m still fine-tuning
2. Adding more rigor to diversification into opportunistic assets like Silver ETFs, unlisted stocks, and international markets
3. Allocating more time for analysis or hiring support for deeper research

The Goal

By 2030, I aspire to become a top-notch investor I can take pride in.
And on this journey, I want to bring along as many of you as possible, helping you achieve financial freedom that you can take pride in too.
Let’s grow together. 🌱


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