Last week, I subscribed to a new service by Motley Fools named Rising Stars 2020. The idea is to buy at least 25 good US small-cap and micro-cap companies, in hope that a handful of them will drive the overall return of this portfolio in long term. A ballpark figure is doubling the return every 5 years which translates to CAGR of 15%.
Since I am in the process of resetting my portfolio from 2020, I decided to give this a try. However, as this is riskier to me, I will limit it to 10% of my portfolio. As I am paying for the services, I do not intend to do much research and am likely to just follow their recommendations. Also, since each company is going to take up such a small position in my portfolio, I will not track their performance individually in my portfolio. Instead, I will take it that I am investing in a “US micro-cap fund” and track the overall performance of this “fund”.
Having no intention to put in any more money for investment this year, I sold the following counters to raise some cash for this project.
- Tencent at HK$321, taking a loss of 16.5%. I still think that the long term prospect of this giant is good. However, I decided that besides Singapore market, I would only deal with the US market for at least the next few years. This will make tracking less tedious as I only have to work with one exchange rate.
- Nvidia at US$203, for a profit of 11.5%. Bought at the end of last year when it plunged and finally recovered recently. It was a punt that turns out well.
- Texas Roadhouse at US$58.0, for a profit of 2.0% (including dividend). I just like this counter less than the other counters that I am holding.
Towards Financial Independence 
$1k is super expensive. Curious who pays for it? Can we share, does Motley allow? Willing to pitch in 100-200$. Anyone interested in joining?
They do recommend that subscribers to invest at least 50k, so the subscription won’t take up too much of a percentage. I invested less but am still up by about 60% after the subtracting the fees. So not complaining. Sorry, I am not interested in the sharing.
It’s not 1k. I think it’s 2K
It’s 2K
I would be down to share! Hopefully we could find
I would not have sold NVidia .
Yup, should have kept it.
Nvda seems like a very volatile stock
I have not looked at it since I divested but i don’t rem it being anymore volatile than other counters.
Also gonna guess zuo qtwo and charlottes web
I would assume some of the stocks are irbt hcat spce sfix lpsn
No comment 😊
Oh come on lol I did a lot of research….
Am I right on anything?:)
I think have.
Have?? What do u mean?
Let’s leave this conversation as it is. Not going to carry on to talk about it. Thanks.
Will do. I apologize ..
Anyways kin chuah was thinking maybe we could compare portfolios.. I have their moneymakers one which did impress me and is set up very nicely (in fact they have 3 separate portfolios in the service long short dividends and moneymakers) anyways hope to hear back from you.
Thanks for the offer. I will give this a miss. And hope you can find someone else to share with you.
Moneymakers does seem like a very good portfolio a lot of really good names that have already been giving me good profits during this crazy time but I wanted to finish my portfolio now with small cappers
If you’re still interested in rising stars I can provide it?
Although knsl which they openly gave everyone during the pitch is in their moneymakers long short portfolio so I guess some overlap too…
Ya same here kin chuah. Just way too many portfolios I guess..
R u not allowed?
personal decision
Gotcha. It’s just so hard with motley fool to get in on everything because they already got me to join stock advisor rule breakers and money makers which was over 2000 bucks that I can’t do rising stars now also… but their pitch for small cap stocks was very appealing and now I’m trying to figure out some good small cap stocks that they believe in..
Normally I ignore their sales pitch. Stock advisor and rule breaker are enough for me. It’s just coincidental that I was rebuilding my portfolio then, that I gave it a try. Unlikely I will go for their other services after this. And like you said they will be overlap here and there.
5G Next Gen supercycle PM if interestec
So……You indicated what stocks you sold; Tencent, Nvida, and Texas Roadhouse……..What stocks are you buying in this portfolio reset? I’m looking at Enwave and Hamilton Thorne along with Planet 13 and Charlotte’s web, but looking for a full speculative portfolio with small and micro’s.
See this post for the stocks in my portfolio. https://mrtfi2024.wordpress.com/2019/11/17/unveiling-team-2020/
What did u buy from the rising stars 2020 portfolio
As this is still an active subscription service, I would not reveal what are the recommendations. Probably can talk about them in 2022.