Portfolio Options

SAM offers clients three portfolios: our conservative portfolio, standard portfolio, and aggressive portfolio. At any given time, these portfolios may overlap considerably with one another.  For example, if portfolios contain about 30 US equities, the three portfolios may share about half of them in common with one another.  This overlap reflects our view that if you can find great businesses trading at attractive prices, the ideal holding period (to paraphrase Warren Buffett) is “forever” – and that the stocks of such businesses should constitute the backbone of any portfolio. The types of businesses we’re talking about are highly capital efficient firms, often with strong brands, franchises or float-generating qualities, which also often fall into the category of “trophy assets” or best-of-breed players in their industry.

Our three portfolios differ from one another mainly in their different orientation to the goals of income versus capital appreciation.  Our conservative portfolio will typically include a heavier representation of income and yield-generating securities. Conversely, it will exclude some “higher-octane” stocks, such as early-stage biotech companies recommended by Stansberry Venture, which have potential to become “multi-baggers” but also carry risk of significant or even total capital impairment.  The orientation of our aggressive portfolio will typically be a mirror image: It will include several of these more speculative picks, while omitting some of the more conservative securities whose main characteristic is recurring yield.  Our standard portfolio is a blend of the conservative and the aggressive.

For more detail on the three portfolio options, click here.