Single Letter Tickers

The Portfolio Sector Breakdown

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The InvestorPlace team gave me a little nudge today to get around to posting about my portfolio. Nothing like the pressure of being a featured blogger to get me writing.

As I mentioned in my past entry, I wanted to do a little analysis about each of the stocks in my portfolio. However, the first stop I want to take is a bigger picture look at what is in my portfolio at the sector level. In every market cycle there are hot and cold sectors. So lets just see what sectors I'm investing in.

Here is a piechart that gives a graphical representation of the actual sectors.

As you can see my biggest sector holdings are Insurance, Materials, and Energy. One of the problems I see immediately is in a rush to get my shares purchased I didn't put much thought into the weighting of my fund. So I ended up using a share based weighting. That means some positions would be more dominant in the portfolio than others strictly because of the share price. The ideal option would have been either a sector based weighting or even a dollar based weight.

Now if I had gone with an dollar based weighting, then my sector breakdown would have shown a different picture. For all the single letter tickers, the Telecommunication companies seem to really like these single letter tickers. So an dollar weighted portfolio would have had me heavily invested in the Telecom companies.

Now that I have a better picture of what makes up my portfolio, future posts will go into more detail about the individual positions. I will also try to document my thoughts on where I believe each of these sectors may be heading in the future.