Tech-Stock Portfolio Overview
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(Additional
Performance Data)
Subscribers have access to weekly transactions (both purchases and the much-more-rare sales) as well as a list of portfolio holdings and trade confirmations.
This is a model stock portfolio
comprised of real investments ($12.50 per week starting in April 2024) made on the first trading day of each week and has been featured in my videos which can be found on my YouTube channel.
This portfolio invests exclusively in high-quality stocks from the technology sector. Each week we publish our list of the top-rated tech stocks and invest in the top 10. The rating methodology in this strategy is based on valuation and quality. The list of top-rated tech stocks changes from week to week and by investing weekly, we increase the diversification of the portfolio.
Ways to potentially use this portfolio:
Core Position of a Stock Portfolio
Every investor's risk-tolerance is different, and what is too risky for one investor might be too conservative for another. Aggressive and young investors may choose to use this portfolio as the core position of one's stock portfolio (outside of the fixed-income portion of one's total portfolio) while adding other sectors to increase diversification, especially over time as risk tolerance for most investors decreases as they age.
Just be aware that, in my opinion, this is not a diversified portfolio since it invests solely in tech-stocks. It is, again in my opinion, a very concentrated portfolio, although many investors have portfolios of far fewer stocks. Just realize this can be a volatile portfolio and tech crashes can happen (e.g. the dotcom bubble in 1999).
Combine Tech with Defensive Stocks to Retain High Returns but with Lower Volatility
In a research note that I obtained ahead of publication, the Center for Financial Research and Analysis reports that a portfolio consisting of 50% tech stocks and 50% consumer staples stocks delivered 94% of tech's returns while experiencing only 60% of its volatility since 1990 (rebalanced annually).
Why is this impressive? Because tech stocks have out-performed the market anywhere from 1.3x to 1.7x over the past 3, 5, 10, 20, and 35 years per the research note. Also, tech stocks provided a greater than 30% annual return in 6 of the last 8 years, according to the research note which was published in January of 2025.
Some call this 50/50 strategy the "Free Lunch Portfolio" which is defined as receiving something for nothing, or within the investing world, receiving a higher return with lower volatility. While there is no guarantee that what worked in the past will work again, why might a 50/50 portfolio of tech stocks and consumer staples stocks have nearly the same return of a portfolio of 100% tech stocks but with much lower volatility? Likely because when one of the sectors zigged, the other zagged. The value of lowering the volatility of a portfolio cannot be overstated, both psychologically and numerically.
Add Tech to a Portfolio that has Few Tech Stocks
If you have a portfolio that has little exposure to the technology sector (which is usually the case with our High-Yield Stock Portfolio), then you might want to consider adding the tech stocks in this portfolio.
To Add Growth Characteristics to either a Value-Oriented Portfolio or a Basic Index Fund Portfolio
Many investors have a portfolio that is skewed toward value stocks or their portfolio consists of basic index funds. If you want to add growth characteristics or just skew your portfolio more toward growth stocks, adding an allocation to tech stocks can help you accomplish this.
To Add Diversification to a Dividend-Oriented Portfolio
If, like many of us, you have a portfolio comprised heavily of dividend-paying stocks, if you are looking to add more diversification to your portfolio, this tech-stock portfolio can help out since usually 70-80% of the stocks in the portfolio pay dividends. Simply invest in the tech-stocks from our weekly "buy list" that pay a dividend. This is also a great way to add a growth element since many dividend-oriented portfolios focus on value stocks and lack growth companies.
The ranking system used for these tech stocks may differ from the rankings we use to rate dividend-growth stocks because not all tech stocks pay dividends, therefore in this ranking we ignore the criteria that involves dividend-growth, dividend payout ratio, etc. but we still rank the companies based on valuation and quality.
As always, keep in mind that
investing in individual stocks or mutual funds involves risk.
Past performance is never a guarantee of future performance.
To see the portfolio's recent transactions, portfolio holdings, and trade confirmations, click the green arrow below or at the top of the page.
Performance
Since Inception1 |
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| Tech-Stock Portfolio Average Annual Return: |
39.04% |
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| Portfolio Yield Based on Original Investments |
0.72% |
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| Portfolio Yield Based Assuming All Stocks Purchased at Today's Prices |
0.64% |
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