Portfolio Radar

The first version of the Portfolio Radar is ready.  Unfortunately this turned out to be much more manual effort than desired, but a start (that can be automated later).  Each layer 1-6 corresponds to different levels of investment.  I have left my draft components that is close to my portfolio as an example.

1 = Core Holdings that typically would not sell
2 = Holdings to sell only if price exceeds targets and value
3 = Special situations for capital gains
4 = To purchase once entry target reached
5 = Want to purchase but price much too high – waiting
6 = Observing as indicators and complimentary insights

This is the highest level view the radar screen … just by position.

Each position has other information associated with it that adds additional views.

Here is a view by major market segment

And finally, here is a view by investment type: stock, bond, ETF or REIT.

Now with these views, i can analyze if i am distributing my efforts according to my portfolio objectives, my key investment narratives, and my current investment macro bias.  All of those terms need a brief summary.

  • portfolio objectives:  this is the traditional risk tolerance balance against needed return on your investment in specific timeframes.
  • investment narratives:  a specific theme of investment based on your knowledge and analysis that you have high confidence of an investment foundation over a near-term horizon.  For example, my three key narratives are:
    • healthcare driven by the demographics of an aging population over the next 10-20 years
    • IOT driven by the increasing connected gadgets, devices and machines connected to IP networks and the internet
    • Cyber security driven by the ever increasing concerns of privacy, security and the expanding digitization of our lives
  • investment macro bias:  this is your crystal ball.  do you see interest rates increasing or decreasing, do you see GDP growing, declining, and other variables usually framed in a ‘macro view’

The next post will be the analysis of this within my personal framework.  If you are interested in these graphics and what the Google drive sheets behind them, send me an email.

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