After unbelievable gains in 2020 and most of 2021, I’m seeing some portfolio weakness like the rest of you…
My big tech names have pulled back (looking at you Shopify), and many of my micro caps have been beaten down.
I’ve been slowly de-risking parts of my portfolio, which all started by trimming some of my most speculative holdings last spring/summer.
Using my cash holdings, I have been adding to my long-term mega cap portfolio that consists of 24 holdings. These include:
Big tech giants like Shopify (SHOP), Apple (AAPL) & Microsoft (MSFT), of which the latter two have been (and will continue to be) incredibly good at separating me from my money in an endless tech upgrade cycle.
Brookfield Infrastructure Partners (BIP) & Canadian National Railway Co. (CNI) that provide critical services regardless of what the market does.
Abbvie Inc. (ABBV) who sells the biggest drug in the world, Humira.
Lots of other steady, boring stocks like Bank of Montreal (BMO), Telus (TU) & WalMart (WMT) (who is entering the Metaverse?! – but we’ll save that for another newsletter).
Stability is nice, and boring stocks will always be a substantial part of my portfolio…but I didn’t get the nickname Small Cap Kev by telling you I own WalMart.
I am always laser focused on tiny growth stocks, even when the market for them looks weak. In fact, I am MOST active when penny stock markets are weak.
I am constantly searching for penny stock diamonds in the rough, and when there is blood in the streets, I feel like I am at my prime.
There are deals to be had as a result of:
Recent IPO’s that have been cut in half after listing.
Solid revenue generators trading near seed financing prices.
Stocks trading at their net asset values!
However, I am being very selective, and I have my seatbelt on because it’s likely going to be a very bumpy ride in the short term.