Portfolio Update: 2 New Additions + 1 Sale + Reinforcements

Further developing my small-cap portfolio strategy

The decision to sell five stocks last month, though somewhat poorly timed, was justified based on company performance and earnings. Now, I am reinforcing my small-cap portfolio with two new purchases, while also increasing positions in both my small and large-cap portfolios. Let's dive into these updates together.

Since its inception in late February 2024, my small-cap portfolio has delivered strong performance, achieving a +28.9% gain.

Prior to the two new additions, the portfolio held 14 stocks. My goal is to maintain a portfolio of 15 to 20 stocks, focusing on companies capable of delivering around 20% annual TSR.

While this TSR is a projection, as explained in a previous article, there are no guarantees of achieving it. However, identifying companies with strong business models and high return potential increases the likelihood of reaching this target.

The calculated TSR of the two additions are:

• 19.5%/year for the first one, an US stock

• 18.7%/year for the second one, an Australian stock

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The first buy