One Year Portfolio Update

About a year ago I wrote that my favorite ETF (VGT) made no sense to me because the top 10 stocks in the fund made up a majority of the overall portfolio. So I decided to make my own so-called ETF and invested an equal percentage into the top 8 stocks of VGT. Those 8 stocks were:

  1. Apple
  2. Microsoft Corp.
  3. Visa               
  4. NVIDIA Corp.            
  5. PayPal                       
  6. Adobe                       
  7. Cisco Systems Inc.               
  8. salesforce.com

The only companies I didn’t invest in were Intel and Mastercard. Although these are both great companies, I was looking for some higher growth opportunities. In retrospect, I probably should’ve swapped Cisco for MasterCard, but oh well. Maybe I’ll swap it out in the future. After much deliberation, I added Square (SQ) and CarGurus (CARG) (see my past post for my analysis for why I like this stock) to round out the top 10. The returns will be a bit skewed against me because I’ve been adding to these positions over the past year and CarGurus was only in my portfolio as of February, but for arguments sake I pretended as if it was in my portfolio since last August. So lets see how this has been going for me over the past year:

Portfolio 1 is VGT

Portfolio 2 is my Frankenstein version of VGT

Portfolio 3 is the top 10 companies of VGT

It looks like my portfolio barely beat out VGT. VGT, which I’m still invested in, returned a whopping 40.67% since August 2020 and my portfolio returned 40.95%. I’m happy with this since CarGurus is still a recent investment and is my worst performer with, in my opinion, some great future upside. The top 10 portfolio still had a nice return at 35%, but since it is lagging behind, it makes me happier about my decision to switch things up. I’m in this for the long term so I don’t plan on selling these anytime soon. Maybe ever??? But so far, so good! My plan going forward is to continue to stay invested in VGT and to add to my current positions as much as I can.