Last August, due to the resurgent of Liverpool, I decided to form a football team of stocks, as shown in the image. With the oncoming reseting of my portfolio, it’s time to update the team for the new decade.
Notably, the following players are no longer with the team: Tencent, UMS, Hongkong Land, Mapletree NAC Trust and Mapletree Logistic Trust.
Also, the squad size has grown considerably larger with 28 players and a youth academy. Which means each player will contribute less but collectively I hope that they can produce a steadier performance.
The bracket shows their position size based on their current value in the portfolio. The numbers will probably fluctuate from now to the last trading day of the year but I don’t think the variation will be big. Nonetheless, I will update the number on the last day of the year.
Defenders: FCT (7.1%), MCT (6.0%)
Midfielders: OCBC (CPF 3.8%), RMG (3.3%), Apple (2.2%)
Forwards: Illumina (1.9%)
Defenders: KDC (3.2%), CRCT (3.0%), HL Finance (2.9%), Venture (2.6%)
Midfielders: Straco (3.2%), Food Empire (2.7%), SATS (1.6%), VISA (1.5%), Vail Resorts (1.5%)
Forwards: HRnetGroup (2.7%), IFAST (1.7%), Align (1.2%)
Motley Fools Rising Stars 2020 (3.1%*)
* projected to double by end of 2020.
You will have noticed that I am using the local counters for my defence. They are suited for this role as they generate good income which provides stability to the team. Also, the fullbacks are capable of venturing upwards to support the attack at the appropriate junctures. On the other hand, I needed the US counters to provide the creative sparks and score the goals. While I have a few local counters for these roles, their impacts are probably smaller at this moment but hopefully one day they can be as good. The goalies while passive, played an essential roles to the team. They cushion the volatility of the markets, allowing me to sleep well at night.
The selection of the first 11 and bench is not purely based on position size. It is also dependent on my view of their potential in the next few years. Of course, with the exception of the goalie, things might change along the years. For a beginning, I will provide the update quarterly but eventually it will probably be a biannual or yearly affair.
How would this team fare this year?
If this team was formed at the beginning of 2019, they would have a relatively good year with outperformance from the defence and midfield. Most of the forwards were struggling this year but I am hopeful that the goals will come eventually. Having said that, this is an area which I think needs strengthening.
I am eyeing two forwards to add but their current price are quite inhibiting. As per my past practices, I am likely to buy a bit first before the year end and will add more to my position when there is a market correction.
I am also hoping that there will be some graduands from the youth academy in a few years time. Currently, I am awaiting for the scouts to release their third and fourth reports for me to recruit more newcomers to the academy. There will be more spending on the academy as I hear more from the coaches during 2020. However, the total fund allocated to the academy will be limited to 8% of the team’s value.
Is this for fun only?
The initial idea of having a football team of stocks was really born out for fun only. But now that I am in my third revision, I do think that it fits my investing strategy and provides a good visual for me to ponder and act on my portfolio.
I am excited with Team 2020 and am hopeful that the team will play a part in the pursue of my financial goals.
Is this some of the list of their top 43 micro caps pick?
If you are referring to the counters mentioned in the above post and if the “their” is Motley Fools, then nope they are not. Most of the counters written in this post are counters in Singapore market and not US market.
Interesting. What made you decide between Motley Fools Rising Stars 2020 vs Blast Off 2020?
purely by chance. normally, I don’t read their MF advertisement. So I did not even know the Blast Off 2020 service.