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The 2009 20s Money Model Portfolio

30 March 2009 6 Comments

I’ve been working for a few days on a model portfolio for myself.  Basically, if i had enough money to create 20-30 positions, how would I allocate the portfolio?  How diversified would I be?  I will give you the full portfolio in this post.

First, the important thing is you probably need at least $25,000 to implement this portfolio.  If you have less money, you probably will want to not have as many positions as this portfolio shows.  You can tweak your own portfolio to create a similar balance with fewer positions if needbe.  If you have any questions about it, leave a comment and I’ll respond.

Below is the portfolio I have put together with every position, corresponding yield, and percent allocated to this position with regards to the total portfolio.

A few key notes regarding this portfolio:

  • While there is some level of diversification, it is heavily skewed towards gold and commodities as well as international exposure (Asia).
  • Only 5% of the portfolio is in financials
  • Most US stocks listed in this portfolio are international companies that should benefit from a weak dollar and/or international growth
  • 7.5% of the portfolio is short positions – mostly exposed to US retail

What I want you to take from this is how to create a portfolio to accomplish the long term investment objectives you may have.  I believe you want to create a portfolio that takes advantage of global macro economic trends (commodities and Asia in my case), contains some level of diversification (but not complete diversification) and has a decent yield.  If you have suggestions to better accomplish this, I’m all ears!

6 Comments »

  • Irina I said:

    Love your site and love this post. It is especially helpful that you posted a screen shot of the Excel spreadsheet. I’m going to go home tonight, try to build it and play around with it to get comfortable with what I would need to do when I actually get enough courage to invest. Thank you!

  • Kevin said:

    Irina:

    I’m glad the screenshot helps. Again, it is a first version of the portfolio, you could definitely swap out some positions but it should provide some general direction.

    Let me know what you come up with, I’d love to hear about it.

  • cash said:

    what is dollar? 🙂

  • Matt said:

    I really, really like that you posted a screen shot of your spreadsheet. I would love to see more posts like this. I read a lot of personal finance blogs and in my opinion there is way too much talk and not in enough action in most. I would consider this a big step in the right direction.

    Let's start showing each other how we plan, track, record, etc. and then work together to improve what we're already doing. Great post. More like this would be much appreciated.

  • Kevin said:

    Matt, will do… thanks for the feedback.