Thoughtful walkthrough — the structure is clean and the portfolio discipline is practical.
What would elevate this further is differentiation: a unique framework or model that goes beyond the standard “buy quality at a fair price.” The content is sound, but the strategy lacks a proprietary edge or macro context that makes it feel owned.
I like the emphasis on limiting stress and volatility — that human element of investing is often underexplored. When structure meets psychology, that’s when quality investing truly compounds.
Solid read overall — and a good foundation for new investors learning to think long-term.
With ROIC = 20% and Converts most of its earnings to cash +75% means underutilization of cash, idle Cash piled up, the company is not growing.
.
I rather to have Converts most of its earnings to cash to COGS while able to get ROIC 20% result, that means Cash is efficiently utilized to reinvest and grow the Revenue and COGS concurrently.
Really appreciate how you walk through the real challenges of deploying large amounts thoughtfully. It's tempting to rush into building a portfolio fast, but as you pointed out, patience compounds returns before you even invest. Having a clear radar, a price discipline, and a focus on durability over excitement is what separates a portfolio that survives from one that thrives.
Good stuff, I especially agree with the tactical and structured way you recommend building out positions for long-term investments. I always add that cash position (the % of portfolio allocated to cash) is a real position if you actively manage (‘continuously verify’) a portfolio like this. As you say, if you are monitoring fundamentals, earnings reports and a companies (or sectors) growth story to such a degree that you can only keep up with ’15-20’ positions that you scale into several times over over 6-12 months on a 10 year horizon you will end up swing trading (tactical DCA) on quality stocks. Minimally, you will likely see better valuation-to-quality to take positions in over that period and lose conviction in some of the original companies, so mange that cash position and exposure.
You’re looking to expose the hypothetical 100.000$ to the market on a 10 year investment timeline in a low risk way, but a 20 single stock portfolio is absolutely still a high risk investment approach. No matter the quality of the company, moat, or growth story almost every portfolio that is comprised of 15-20 individual companies is very high risk and will at some point in the 10 years (a traditional, but relatively arbitrary way to say long-term) will have large parts, or in a bear market all, of your portfolio down significantly. Often these periods of time will see bad quarterly reports and bad sentiment as your investments may fall below even below your cost-basis. This is the crux of the issue and why dead investors are perform the best. Emotion, fear and greed, will make the entry strategy look like an exit strategy. Most fail and try to time the top or bottom and get wrecked with such a risk on allocation no matter the long-term conviction.
Don’t get me wrong, I’m in general agreement and great article. To co-opt the Lynch quote though, “More money has been lost by investors preparing for a corrections, or trying to anticipate corrections, than has been lost in the corrections themselves.” Diversified exposure beats trying to time the market, which is why in any actively managed portfolio risk management, weather it’s through cash position or diversified exposure, gives you the psychology and tools to manage holding highly concentrated, high conviction allocations. I think about a dynamic 25% sector diversification and 25% in broad diversification is a good way to manage the risk, emotion, and exposure if you are taking up large allocations in individual firms. You can hedge by increasing your cash position, with this diversified exposure if concentrated positions point towards buying opportunities on intermediate horizons.
I often park an oversized portion in the S&P500/100/all-world or other diversified/sector ETFs as part of my managing my exposure, cash position, and overall investment allocation in terms of risk. I’ve significantly lowered my indicie/etf allocation over the year over the last year. I had about 5% of that in Gold until recently for instance (I don’t touch crypto, so a very traditional way to manage equity risk) and some in FXE for a bit too. I even have some money running through a CD as part of managing a cash position, having to make the transfer decision might not get the best returns, but it does pay dividends in psychology. Protect your capital, manage your risk, some exposure beats no exposure; a traders manifesto.
My point with the hypothetical 100.000 as the initial cash position is merely that managing risk and cash position/low risk investments is also a way to take advantage of opportunity and manage emotion. There will be better points to buy and sell over 10 years. There is always another trade or better opportunity. A thought.
Concentration builds wealth, diversification maintains wealth. There's some advice for a mature portfolio. Size appropriately when trading and know your priorities. Risk what you can afford to lose or have a long investment timeline before you need it. This is solid advice if you've moved from accumulation to spend down in retirement, anything you risk should be within your 4% draw safe down rate when budgeting.
Don't risk money you need over the next few months.
Yes. some retiree have millions who worked and never demanded anything. The complainers hate their parents but expect to inherit those millions you talk about.
I worked, learned 4 languages and rewarded for my work efforts. I never once blamed my parents or anyone for my situation.
To seed, build, and nurture timeless, intangible human capitals — such as resilience, trust, evolution, fulfilment, quality, peace, patience, discipline, relationships and conviction — in order to elevate human judgment, deepen relationships, and restore sacred trusteeship and stewardship of long-term firm value across generations.
A refreshing poetic take on our business world and capitalism.
A reflection on why today’s capital architectures—PE, VC, Hedge funds, SPAC, Alt funds, Rollups—mostly fail to build and nuture what time can trust.
Built to Be Left.
A quiet anatomy of extraction, abandonment, and the collapse of stewardship.
"Principal-Agent Risk is not a flaw in the system.
Thank you so much
You have packaged a lot in an article
Thanks for your comment! Appreciate it :) We try to provide as much value as we can!
Super valuable, love it! 👍👍
Thanks mate, appreciate your comment.
Great article, thank you
Cheers Patrik, thanks for the idea 👌🏽
Quite helpful, thanks!
I'm glad :)
Please help reccomend some of the best analysts on X
Thx
Some good accounts to start with:
@Long_equity
@F_Compounders
@MnkeDaniel
@invesquotes
@Qcompounding
@Sleepwellcap
@CJ0pp3l
@Steadycompound
@stonkmetal
@irrationalmrkts
@10kdiver
@arneulland
@borrowed_ideas
@stockmarketnerd
@fromvalue
@EugeneNG_Vcap
@valuestockgeek
@TSOH_investing
@Gautam_baid
@johnhuber72
@bkaellner
@chrismayer
@7lukehallard
@capitalemployed
@wolfofhardcourt
@fundasyinvestor
@simpleinvest01
@stock_opine
@Clay_finck
@quality_stocksA
@finding_moats
Or just don't follow anyone, read many books (not everyday Wall Street noise) and invest on your own like I do.
Best way, trade your own money!
Thoughtful walkthrough — the structure is clean and the portfolio discipline is practical.
What would elevate this further is differentiation: a unique framework or model that goes beyond the standard “buy quality at a fair price.” The content is sound, but the strategy lacks a proprietary edge or macro context that makes it feel owned.
I like the emphasis on limiting stress and volatility — that human element of investing is often underexplored. When structure meets psychology, that’s when quality investing truly compounds.
Solid read overall — and a good foundation for new investors learning to think long-term.
For Stocks only that is a good approach but what about other asset classes? I would not leave Gold and especially Bitcoin out of the Portfolio.
Converts most of its earnings to cash +75%
Comment:
With ROIC = 20% and Converts most of its earnings to cash +75% means underutilization of cash, idle Cash piled up, the company is not growing.
.
I rather to have Converts most of its earnings to cash to COGS while able to get ROIC 20% result, that means Cash is efficiently utilized to reinvest and grow the Revenue and COGS concurrently.
.
Really appreciate how you walk through the real challenges of deploying large amounts thoughtfully. It's tempting to rush into building a portfolio fast, but as you pointed out, patience compounds returns before you even invest. Having a clear radar, a price discipline, and a focus on durability over excitement is what separates a portfolio that survives from one that thrives.
Edit: to clean it up a bit.
Good stuff, I especially agree with the tactical and structured way you recommend building out positions for long-term investments. I always add that cash position (the % of portfolio allocated to cash) is a real position if you actively manage (‘continuously verify’) a portfolio like this. As you say, if you are monitoring fundamentals, earnings reports and a companies (or sectors) growth story to such a degree that you can only keep up with ’15-20’ positions that you scale into several times over over 6-12 months on a 10 year horizon you will end up swing trading (tactical DCA) on quality stocks. Minimally, you will likely see better valuation-to-quality to take positions in over that period and lose conviction in some of the original companies, so mange that cash position and exposure.
You’re looking to expose the hypothetical 100.000$ to the market on a 10 year investment timeline in a low risk way, but a 20 single stock portfolio is absolutely still a high risk investment approach. No matter the quality of the company, moat, or growth story almost every portfolio that is comprised of 15-20 individual companies is very high risk and will at some point in the 10 years (a traditional, but relatively arbitrary way to say long-term) will have large parts, or in a bear market all, of your portfolio down significantly. Often these periods of time will see bad quarterly reports and bad sentiment as your investments may fall below even below your cost-basis. This is the crux of the issue and why dead investors are perform the best. Emotion, fear and greed, will make the entry strategy look like an exit strategy. Most fail and try to time the top or bottom and get wrecked with such a risk on allocation no matter the long-term conviction.
Don’t get me wrong, I’m in general agreement and great article. To co-opt the Lynch quote though, “More money has been lost by investors preparing for a corrections, or trying to anticipate corrections, than has been lost in the corrections themselves.” Diversified exposure beats trying to time the market, which is why in any actively managed portfolio risk management, weather it’s through cash position or diversified exposure, gives you the psychology and tools to manage holding highly concentrated, high conviction allocations. I think about a dynamic 25% sector diversification and 25% in broad diversification is a good way to manage the risk, emotion, and exposure if you are taking up large allocations in individual firms. You can hedge by increasing your cash position, with this diversified exposure if concentrated positions point towards buying opportunities on intermediate horizons.
I often park an oversized portion in the S&P500/100/all-world or other diversified/sector ETFs as part of my managing my exposure, cash position, and overall investment allocation in terms of risk. I’ve significantly lowered my indicie/etf allocation over the year over the last year. I had about 5% of that in Gold until recently for instance (I don’t touch crypto, so a very traditional way to manage equity risk) and some in FXE for a bit too. I even have some money running through a CD as part of managing a cash position, having to make the transfer decision might not get the best returns, but it does pay dividends in psychology. Protect your capital, manage your risk, some exposure beats no exposure; a traders manifesto.
My point with the hypothetical 100.000 as the initial cash position is merely that managing risk and cash position/low risk investments is also a way to take advantage of opportunity and manage emotion. There will be better points to buy and sell over 10 years. There is always another trade or better opportunity. A thought.
Thanks for the insights.
You need to expand. You leave out retirees who have millions and all you do is talk about $100,000 portfolios for 20 year olds.
Concentration builds wealth, diversification maintains wealth. There's some advice for a mature portfolio. Size appropriately when trading and know your priorities. Risk what you can afford to lose or have a long investment timeline before you need it. This is solid advice if you've moved from accumulation to spend down in retirement, anything you risk should be within your 4% draw safe down rate when budgeting.
Don't risk money you need over the next few months.
Yes. some retiree have millions who worked and never demanded anything. The complainers hate their parents but expect to inherit those millions you talk about.
I worked, learned 4 languages and rewarded for my work efforts. I never once blamed my parents or anyone for my situation.
Hello there,
Huge Respect for your work!
New here. No readers Yet.
But the work has waited long to be spoken.
Its truths have roots older than this platform.
My Sub-stack Purpose
To seed, build, and nurture timeless, intangible human capitals — such as resilience, trust, evolution, fulfilment, quality, peace, patience, discipline, relationships and conviction — in order to elevate human judgment, deepen relationships, and restore sacred trusteeship and stewardship of long-term firm value across generations.
A refreshing poetic take on our business world and capitalism.
A reflection on why today’s capital architectures—PE, VC, Hedge funds, SPAC, Alt funds, Rollups—mostly fail to build and nuture what time can trust.
Built to Be Left.
A quiet anatomy of extraction, abandonment, and the collapse of stewardship.
"Principal-Agent Risk is not a flaw in the system.
It is the system’s operating principle”
Experience first. Return if it speaks to you.
- The Silent Treasury
https://tinyurl.com/48m97w5e
Wonderful insights
Great stuff, with actionablw steps.
Super valuable!! Thanks for the article.
Wondering, do you have any recommendations of who to follow for Biblically responsible investing analysis or Catholic-based retail investors/analysts?