You will need to click on the image to get a better look.It had been a while since I updated my personal portfolio on Morningstar. I do this periodically to make sure sectors and other things have not strayed too far from what I want it to look like.
If you read the two paragraphs, you will see a touch of contradiction. The paragraph on the left (under the pie chart) starts out telling me that my portfolio is aggressive and can be volatile. The paragraph on the right tells me that my portfolio is biased toward conservatively priced value stocks. One very confusing point is that it says large cap value is not where I have most of my exposure. But isn't that what I am biased toward?
Further down on that page (not shown) it tells me that my median cap size is $15 billion, yet the table above looks like I have 75% in large cap. While this is subjective, $15 billion is not even that big by mid cap standards.
I trust the sector breakdown, ROE, PE and so on. The interpretive stuff is sketchy so watch out.
Frequent readers may notice that my account is put together differently than what I do for clients. I wrote about this a year ago. My portfolio is assembled in such a way to really minimize volatility and correlation to the US stock market. The are two reasons for this, one is that my income is clearly dependent on the fortunes of the US stock market. What is good for the market is good for my income and what is bad for the market....
The other important idea behind this is that my portfolio takes very little work. It does my clients no good to spend time actively trading my own account. Moreover as a matter of philosophy I believe in capital markets and I want to just let them do their thing.
2 comments:
Hmmmm ... $15bn might not be big by the standards of US megacaps, but fifteen billion dollars is big. A $15bn stock would comfortably be a member of the FTSE-100 index and (I think but haven't checked) the CAC-40 and the DAX too.
very fair point
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