Originally published July 22, 2020
I have decided to unwind most of the crash strategy. This week I have made a number of adjustments to lower volatility and make the portfolio more resilient. I am way ahead and there is no reason to get too greedy at this point. I have basically:
- Rebalanced the portfolio to align as best as possible to the Sector weightings of the Sp500 index.
- Pruned positions that have broken out of my 5% max weighting rule, these include Shopify with a 150% return, Kinaxis with a 150% return, and Amazon with a 300+% return.
- Paid down the portfolio loan (margin) to effectively zero.
With excess cash, I bought a new position – Constellation Software – symbol CSU.to (thanks to my friend Steven Boost for the advice)., and added to my TD position.
Note that I am back to holding only a speculative amount of Shopify, as it makes no sense to hold a full weight considering its run-up and horrible financial metrics.
From a strategy perspective, I am overweight on Financials, which I like because they pay an excellent dividend even when they are out of favor. I can wait for their values to go up and can be quite happy doing so.
I continue to expect the market to move forward, but because of the pandemic, I wonder about the secondary ripple effects like big bankruptcies or even worse, other unknowns. That’s the point, after all, a shock is only a shock when it’s unexpected. That being said, I think the portfolio is in a good position no matter which direction Mr. Market decides to go.
Happy investing.
Marc’s Monthly Moves
| Buy | Sell |
| Constellation Software (CSU.TO) TD Bank (TD) more | Amazon (AMZN) half my position Kinaxis (KXS.TO) some Shopify (SHOP) most |
Marc’s Portfolio YTD Returns
- Portfolio return 11% (including currency gains)
- Portfolio return 7.75% without currency gains
- Sp500 return 1%
Note: Portfolio is outperforming the Sp500 by 6.75 points.
Money with Marc 