Six weeks ago, I unveiled the team. Since then, I decided to include a conviction scale in my portfolio to guide me in sizing the initial positions of my holdings. I am just going to use 1 to 4 (%), so that I can remember the guide easily.
Any counter that I have in my portfolio should have at least a position size of 1%. A position size of less than 2% means I have a lower conviction of the counter which could be due to various reasons. On average, a normal conviction counter should take up 3% (average of 2 and 4) of the portfolio. Counters that I have high conviction will have a position size of at least 4%.
With that in place, I have made some adjustment to my line-up. Decided to have OCBC to replace Booking in the first eleven and push Starbucks to become forward. I have added a few more reserves and completed my first round recruitment for youth academy.
So here’s the team that will take on the market comes tomorrow! Hope they will do as well as the current Liverpool team!
Defenders: FCT (7.0%), MCT (4.4%)
Midfielders: Apple (2.3%), Raffles Medical (3.2%)
Forwards: Booking (2.6%), Illumina (2.4%)
Defenders: CRCT (3.7%), HL Finance (3.3%), KDC (2.6%), Venture (2.6%)
Midfielders: Straco (2.9%), Food Empire (2.8%), SATS (2.2%), VISA (1.5%), Vail Resorts (1.4%)
Forwards: HRnetGroup (2.7%), IFAST (2.1%), Intuitive Surgical (1.0%), Adobe (1.0%)
Motley Fools Rising Stars 2020 (2.9%*)
*projected to double by end of 2020.
That’s an interesting portfolio. What do you think Starbucks’ growth streams are looking like going forward? The pick-up only kiosks seems to be quite popular.
I did not go deep into the details of the business. My general sense is that it will continue be a strong brand and hence should continue to grow in its existing market. My initial reason for purchase was due to its expansion in China market which had some hiccup in 2018 but was picking up again last year. So I am hoping to see more positives from it in the next few years.
Agreed! Will be some interesting few years ahead as the Chinese market starts appreciating coffee more with Starbucks’ push and with local competitors like Luckin springing up.