The Method

How the portfolio is built

Every name in the portfolio has been through eight separate checks — from how the company looks on its own merits, to how it compares with its peers, to whether the broader market is in a state to support it. Click any step below to see what it’s for, and the live example it produced for today’s book.

Looking at a company six different ways

We score every name through six independent lenses before deciding anything.

Short, medium, and long views

The same six lenses are weighed differently depending on how far ahead we're looking.

Reading the market backdrop

When the wider market is in trouble, we shrink position sizes across the board.

Comparing companies against their peers

A stock has to look attractive compared to other names in the same industry, not just versus the market as a whole.

Building a focused portfolio

Once everything is ranked, we pick the top names and give each an equal share.

Why we don't churn the holdings

A name that drops just outside the cut is kept in the portfolio. Only a real fall pushes it out.

Ignoring trivial rebalances

If a position has drifted only slightly from its target weight, we leave it alone.

Charging realistic trading costs

Every trade is taxed by an estimated spread cost, the same as a real account would pay.