Defining the Goal
Build an investment portfolio that outpaces inflation, securing annual returns higher than 5%.
Key Performance Indicators (KPIs)
To stay on track, I’ve set three KPIs as my guiding stars:
- Annual Saving Target
- Minimizing portfolio turnover rate
- Being fully invested
Meeting these targets ensures I’m not just treading water but actively steering my financial ship towards success.
Investment Categories
I’ve embraced the Core-Satellite mindset, a strategy built on the foundation of two distinct components: Core and Satellites.
Core: Long-Term Stability
- Long-term investments that focus on increasing positions rather than selling.
- Limited positions for close and effective monitoring.
- Individual stocks won’t dominate my portfolio.
Satellites: Strategic Growth Opportunities
- Purchased during market pessimism (CNN Fear & Greed Index below 20).
- Sold with a trailing stop loss at -25%.
- Adjust the stop loss if the value of satellite positions rises by 5%.
- Restricted to 15% of my portfolio.
Low Volatility Funds and Cash
- Monthly Dollar-Cost Averaging (DCA) for stability.
- Caps at 20% of my total portfolio.
- Pruned when the CNN Fear & Greed Index falls below 20.
Investment Instruments
Tobinvest AS: Core Position Holder
- A holding company focusing on core positions.
- Prioritizes dividend-paying equities for cash needs.
- Keeps transactions to a minimum.
Wikifolio Global Stock Picking Tobinvest: Certificate of Growth
- Tradable certificate on the Stuttgart Stock Exchange.
- Core position with a mix of equities (stocks, ETFs, etc.).
- New positions start at a minimum of 4% of my portfolio value.
- Quarterly updates and a stop loss at -25% of the position value.
- Maintains a fully invested stance, with less than 5% in cash.
- More info regarding my Wikifolio.
Personal Banking Accounts: My Satellite Focus
- Concentrates on satellite positions and DCA.
- Building Low Volatility position and cash holdings