Portfolio Update #3
Big News...
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We have had a US-Iran war, a global tariff escalation, the biggest single-day selloff since 2020, and oil prices spiking 66% in under two weeks.
The S&P 500 is roughly flat for the year.
The Multibagger Ideas model portfolio is roughly flat for the year.
A highly concentrated portfolio of micro and small caps - the most volatile corner of the market - has matched the benchmark through one of the most chaotic stretches in recent memory.
No significant drawdown.
No panic selling.
For a portfolio this concentrated and this far down the market cap spectrum, I am very pleased with how it has held up.
Meanwhile, the positions are working.
The new position I announced on Monday is already up nearly 8% in its first week.
The position we added last month is up nearly 70%.
One holding is being cut, and there is a lot to cover on the existing names.
You may have noticed I have not published a portfolio update since early March.
That was deliberate.
Financial media and newsletters have been falling over themselves to publish panic content every time a new headline drops - tariffs escalating, then pausing, then escalating again, a shooting war closing the Strait of Hormuz, daily reasons to sell everything and sit in cash. Reshuffling your holdings every time the VIX spikes is not a strategy.
It is activity disguised as progress.
The businesses in this portfolio have not changed.
Their revenues have not evaporated.
Their competitive positions have not weakened.
What changed is the price the market is willing to pay for them on any given Tuesday - and that is not the same thing as a change in value.
If you built the portfolio correctly, the correct response to most of this noise is to do nothing. And if prices fall far enough on businesses you understand deeply, the correct response is to buy more.
I did not want to add to the noise.
Investors who read this newsletter think in years, not days. So I waited until I had something worth saying.
Now I do.
Let’s get into it.
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.