I was given the following portfolio construction plan and I’m looking for honest feedback.
The percentages represent target portfolio allocations if the stock falls below the specified price.
Adobe: 7% at $240, 10% below $198 MercadoLibre: 3% below $1600 Lululemon: 8% below $135, 10% below $115 Freddie Mac (FMCC): 7% below $6, 10% below $4 Molina Healthcare (MOH): 15% below $130, 20% at $100 or below JD.com: 10% below $28, 12% below $25 Zoetis (ZTS): 5% below $80, 8% below $65 Veeva Systems: 3% below $150 Freshworks: 3% below $5.65 MSCI: 3% below $530 HCA Healthcare (HCA): 3% below $365 Fiserv (FISV): 5% below $48, 7% below $35
A few questions: Are any of these allocations dangerously concentrated? Which stocks on this list look the most attractive today? Which stocks would you remove entirely? What sectors or themes am I underweight in? If you had $100k and a 10+ year horizon, how would you modify this? For context, I’m 25, have a high risk tolerance, and I’m trying to outperform an S&P 500 index fund over the long run.