Introduction
Welcome to this week’s portfolio update! In this post, I’ll take you through the recent changes in my investment portfolio and share my strategy for selecting stocks. My primary goal is to choose stocks that are poised to outperform the broader market and are currently in an uptrend. To me, identifying stocks that outperform by at least 85% or more is crucial for achieving long-term success in the stock market.
One of the key criteria I prioritize is institutional ownership. Having institutions as major shareholders can provide solid support to stock prices. In this update, you’ll see how my portfolio aligns with these principles and the rationale behind my investment choices.
Portfolio Overview:
Let’s dive into the specifics of my portfolio and recent stock analysis:
Amazon (AMZN)
- Portfolio Percentage: 6.98%
- RS Rating: 92
- Stop Loss Area: 150
- Earnings and Sales Growth: Strong
- Institutional Ownership: High
- Industry Group: Leading
Crowd Strike (CRWD)
- Portfolio Percentage: 13.15%
- RS Rating: 98
- Stop Loss Area: 260
- Earnings and Sales Growth: Strong
- Institutional Ownership: High
- Industry Group: Leading
Datadog (DDOG)
- Portfolio Percentage: 5.8%
- RS Rating: 96
- Stop Loss Area: 220
- Earnings and Sales Growth: Strong
- Institutional Ownership: High
- Industry Group: Leading
Eaton Corp. PLC (ETN)
- Portfolio Percentage: 11.01%
- RS Rating: 92
- Portfolio Percentage: 11.01%
- Earnings and Sales Growth: Strong
- Institutional Ownership: High
- Industry Group: Leading
JFrog (FROG)
- Portfolio Percentage: 6.14%
- RS Rating: 92
- Stop Loss Area: 31
- Earnings and Sales Growth: Strong
- Institutional Ownership: High
- Industry Group: Leading
Google (GOOGL)
- Portfolio Percentage: 6.6%
- RS Rating: 87
- Stop Loss Area: 135
- Earnings and Sales Growth: Strong
- Institutional Ownership: High
- Industry Group: Leading
Visa Inc. (V)
- Portfolio Percentage: 12.22%
- RS Rating: 80
- Stop Loss Area: 258
- Earnings and Sales Growth: Strong
- Institutional Ownership: High
- Industry Group: Leading
Visa Inc. holds the lowest RS rating in my portfolio, making it a potential candidate for the first change when considering portfolio adjustments.
Investment Rationale
I’ve carefully selected these stocks based on their potential for growth, strong financials, and the belief that they are well-positioned within their respective industries. The main factor for choosing the stocks is the RS Rating. This is an indicator of the potential performance of the particular stock.
Technical and Fundamental Analysis
I’ve conducted both technical and fundamental analyses to support my investment decisions. These analyses include charts and data to visualize price trends and financial performance.
I would emphasize that technical analysis plays a predominant role, while fundamental analysis serves as a reassuring backdrop, providing confidence in my selection of strong companies.
Institutional Ownership and Industry Analysis
I place significant importance on institutional ownership and industry prominence when evaluating stocks because they play pivotal roles for two compelling reasons:
- Institutions’ actions often dictate the trajectory of both individual stocks and the broader market. When they select a specific industry for investment, that industry typically outperforms others.
- The same principle applies to individual stocks, where institutional support can significantly influence their performance.
These dual factors underscore why I prioritize industry analysis and institutional ownership in my stock evaluations.
Risk Factors
The biggest risk is that the overall market can take a sudden dive at any time. We all have to keep that in mind. It could happen at any moment, which is why we need to watch the overall market and our own stocks closely.
Right now, things seem to be looking up, but we can’t predict how long that will last. That’s why we have to be ready to adapt.
I’ve carefully picked the stocks and their percentages in my portfolio, but I always remember that things can change in an instant. This goes for both the whole market and individual stocks.
When that happens, it’s time to take protective measures.
Conclusion
In conclusion, my strategy revolves around choosing outperforming stocks in uptrends, backed by strong institutional ownership and favorable industry positioning. While I aim for robust returns, I am also mindful of the inherent risks, especially in a changing market environment. It’s crucial to stay vigilant and adapt to market conditions.
Stay Tuned:
Thank you for joining me on this journey of portfolio management and stock analysis. Stay tuned for next update!
