We are currently 91% invested in stocks. Rest is largely in cash and while it is near same level as previously disclosed in October 2020, there has been some rotation as lucrative opportunities presented itself in e.g. Nokia. We had increased the stake long before the Wallstreetbets induced rally and used that opportunity to offload some of the position.
Few other positions in smaller Finnish stocks have been trimmed as they presented some near vertical climb and ended in my opinion to price level that can not be justified by fundamentals. Well, that's really a lot broader challenge now in the stock market as market as aggregate goes up induced by .. well, I guess mostly by past positive momentum.
Top 10 stocks stand now at above 70% of portfolio already despite some being trimmed down so that continues to spell out as decent company risks. The trick with most of those positions though is that they carry currently most of our unrealized profits and reducing them mean Finnish tax authority takes 30-32%. As long as those positions can be justified by fundamentals - even if need to stretch a bit - I think we are better of just continuing long.
Sector allocation is as shown in the picture:
46% of the portfolio is allocated to technology related sectors and that continues to be the backbone of the portfolio. We do like IT/Tech and would like to accumulate even more, but not with any price.
Industrial goods & services is our second largest bet (I count 50% of Berkshire Hathaway into this btw).
Our top 5 stock positions currently are:
- Metso Outotec (Finland)
- Berkshire Hathaway (USA)
- Nokia (Finland)
- Verkkokauppa.com (Finland)
- Micron (USA)
