Portfolio Construction

Stansberry Asset Management believes in constructing simple, relatively concentrated portfolios that generally consist of no more than about 30 to 40 positions (for example, 20 US equities and 10 other securities), and are therefore digestible on a page or two.  We believe that significantly larger portfolios can be unnecessarily complex, and dilute the impact of our best ideas. We also believe in constructing portfolios that aim to be resilient to different economic and market outcomes, i.e., that seek to avoid strong “one way” bets.

The following diagram illustrates SAM’s portfolio construction approach.

The Five Factors in SAM Portfolio Construction

For more on SAM’s approach to portfolio construction, please see Portfolio Frequently Asked Questions.