Best Way To Invest $100,000: Build An 8-Stock Portfolio For Growth And Value

Brett Ashcroft Green
7.78K Followers
(8min)

Summary

  • Concentrate on a select few high-conviction stocks across different sectors to avoid "diworsification" and maximize returns, inspired by Charlie Munger and Warren Buffett.
  • Utilize Joel Greenblatt's "Magic Formula" and James O'Shaughnessy's methodologies to screen stocks based on earnings yield and return on total capital.
  • Exclude overly regulated sectors like Utilities, Financials, and REITs to focus on sectors with higher growth potential and less regulatory constraints.
  • This portfolio allocates $12,500 each to top stocks in 8 sectors.

Money growth

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A sector diversified 8-stock portfolio

Over-diversification can lead to "diworsification" when you buy too many stocks, over-concentrated in a single sector. Concentrating on the best names that you have the most conviction in is usually the best route to go, making sure

This article was written by

7.78K Followers
I'm a full time value investor and writer who enjoys using classical value ratios to pick my portfolio. My previous working background is in private credit and CRE mezzanine financing for a family office. I'm also a fluent Mandarin speaker in both business and court settings, previously serving as a court interpreter. I have spent a good chunk of my adult working life in China and Asia. I have worked with top CRE developers in the past including The Witkoff Group , Kushner Companies, Durst Organization and Fortress Investment Group.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of AAPL, NVDA, MSFT, AVGO, CSCO, CAT, HON, UBER, BA, XOM, CVX, SLB, KMI, AMZN, TSLA, MCD, SBUX, NKE, META, GOOGL, DIS, T, WMT, PG, KO, TGT, UNH, JNJ, ABBV, ABT, AMGN, SHW, APD, NUE either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

The information provided in this article is for general informational purposes only and should not be considered as financial advice. The author is not a licensed financial advisor, Certified Public Accountant (CPA), or any other financial professional. The content presented in this article is based on the author's personal opinions, research, and experiences, and it may not be suitable for your specific financial situation or needs.

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