Portfolio Update #1
The Multibagger Ideas Model Portfolio
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One of the most common questions I get from subscribers is some version of: “When are you going to launch a portfolio so I can see how you actually size and track these ideas?”
It has come up enough times that I know many of you have been waiting for this before upgrading to paid. Fair enough. The ideas and deep dives were always here, but without a portfolio tying it all together, something was missing.
Today we are fixing that.
Welcome to the Multibagger Ideas Model Portfolio.
What It Is
A concentrated portfolio of 12-18 positions plus cash, starting from a notional value of $100,000 on 1 January 2026. Benchmarked against the S&P 500 (SPY).
Why 12-18? Joel Greenblatt’s work showed that owning just 8-10 stocks eliminates roughly 81% of diversifiable risk. Beyond that, the marginal benefit drops off sharply.
What matters far more is knowing what you own.
I believe that owning fewer, higher-conviction ideas - and sizing them properly - is a better path to long-term wealth creation than spreading capital across 30 or 40 stocks you barely understand. Because I do this for a living and can dedicate all of my time to finding, researching, and monitoring these businesses, I carry slightly more names than most people could reasonably manage in a personal portfolio. But the principle is the same. Concentration drives returns.
Every stock fits our core investment philosophy - SQGLP: Size, Quality, Growth, Longevity, Price. Small companies with room to grow, high returns on capital, durable competitive advantages, long runways, and attractive valuations.
How It Is Structured
The portfolio is built in three tiers:
Core positions (7-12%) - Highest conviction. Deep research done, thesis clear, strong asymmetry.
Building positions (4-6%) - Good businesses where the thesis is developing. May size up over time if the business earns it.
Starter positions (2-3%) - Early-stage ideas. Skin in the game, but conviction is still forming. Some will graduate to core holdings, others will be cut.
Cash - Optionality. Dry powder for when opportunities appear.
Positions will move between tiers as businesses execute or disappoint. When a starter gets promoted to core, that is a signal. When one gets cut, that is a signal too.
How Rebalancing Works
The portfolio starts with $100,000 and there will be no additional cash added.
This is a closed system. When I want to add a new position or size one up, I either trim something else or deploy from the cash balance. Every allocation decision is a real trade-off.
When I publish a rebalance, what you will see is new target percentages - not exact prices or share counts.
The percentages are what matter. They tell you exactly where conviction sits at that point in time. If you want specific prices, you can find them from the date and time each rebalance is published.
The tracking tool starts a new period of return measurement each time I input new target percentages. The returns from each period are locked in, and the new period starts fresh. This is ideal for fair performance tracking - there is no way to game it.
Expect Volatility
This is a concentrated portfolio of small and microcap companies. It will be volatile.
To give you a sense of what that looks like - this portfolio was up roughly 10% by the end of January. It has since pulled back around 7%. In seven weeks I have already seen both a strong rally and a meaningful drawdown. That is the reality of this strategy.
This is why I hold a cash buffer. Having 13% in cash is not a sign of low conviction. Cash gives me the ability to act when opportunities appear, to add to positions during pullbacks, and to avoid being a forced seller at the worst possible time. In a portfolio of microcap stocks, dry powder is not a drag on returns. It is a tool.
This Is Not a Trading Portfolio
There may be long stretches where I do absolutely nothing.
I am an investor, not a trader.
The goal is to find great businesses, size them according to conviction, and let them compound. Sometimes the best thing to do is nothing at all.
That said, I will be covering news, events, and developments for companies in the portfolio on an ongoing basis.
Not every update will include a rebalance. Some will simply be context - earnings results, management changes, industry developments, or shifts in my thinking that do not yet warrant a change in allocation.
Going forward, when I cover new ideas on this page, I will also decide whether they earn a place in the model portfolio - and at what sizing. Every new write-up comes with a real allocation decision attached to it.
A Note on Timing
I have backdated the starting allocations to 1 January 2026 using closing prices from 31 December 2025. A clean calendar year starting point makes year-on-year performance tracking straightforward.
Every stock in the portfolio was covered on this page before that date. The weightings reflect my conviction levels as they stood at the time, based on the research I had published. You can see this for yourself - go back and look at my Top 5 Ideas for November, my Top Ideas Going Into 2026, the free deep-dive write-ups, and the names I consistently flagged as highest-conviction positions. The weightings match the words.
This is not a backtest. It is seven weeks. Everything from today onwards is tracked in real time.
What Is in the Rest of This Post?
Below the paywall, I detail every holding in the portfolio - what the target weightings were at the beginning of the year and where they sit now.
I hope you like this new addition to the page.
The Multibagger Ideas Model Portfolio
The model portfolio and all associated content is for educational and informational purposes only. It does not constitute financial advice. Always do your own due diligence. To read our full disclaimer, click here.
