A year has passed since my first post about my ROI stock portfolio and that means it is time to see how it went.

The portfolio

As of 10th of August 2023, using USD-based percentages, the portfolio looks like this:

In US Dollars this is a 14.4% return, which is not bad at all. Foreign exchange rates however gave me a -5% if I were to convert it to Euros straight away.

In a previous post about my ROI stock portfolio you could read what my plan was. We’re now 5 months further, and that means we’ve reached the halfway mark of the buying period. So how’s it going?

The portfolio

As of 10th of January 2023, just before I deposited another €100, the portfolio looked like this:

• ❌(-3.40%) Microsoft (MSFT) - ❌(-14.07%)
• ❌(-2.20%) Apple (AAPL) - ❌(-17.41%)
• ❌(-2.00%) Mastercard (MA) - ✔️(+5.32%)
• ❌(-3.93%) Qualcomm (QCOM) - ❌(-13.68%)
• ✔️(+0.72%) McDonald’s (MCD) - ❌(-3.06%)
• ❌(-1.36%) S&P Global (SPGI) - ❌(-5.01%)
• ✔️(+1.36%) Novo Nordisk (NVO) - ✔️(+13.02%)
• ✔️(+2.07%) Southern Copper (SCCO) - ✔️(+26.55%)
• ❌(-1.43%) Blackstone Inc (BX) - ❌(-17.91%)
• ❌(-1.65%) Paychex (PAYX) - ❌(-8.18%)
• ❌(-2.72%) Lousiana Pacific (LPX) - ❌(-1.89%)
• ❌(-2.32%) Rio Tinto (RIO) - ✔️(+14.96%)
• ❌(-1.36%) Vale (VALE) - ✔️(+17.29%)
• ❌(-1.42%) Applied Materials (AMAT) - ✔️(+4.07%)
• ❌(-0.27%) KLA Corporation (KLAC) - ✔️(+8.67%)
• ✔️(+2.79%) Vermillion Energy (VET) - ❌(-33.76%)
• ✔️(+0.55%) Crescent Point Energy (CPG) - ❌(-10.19%)

Volatile, that’s how it’s going. Just like the rest of the 2022 market. In fact, now with a couple of months of hindsight we can also see that my starting point, August 2022, was one of the ‘worst’ months to start.

After reading a bit about multiple well-known investors mentioning how important Return On Invested Capital is, I decided to generate a small portfolio (actually a pie within Trading212) with some metrics.

I used finviz to screen and since they don’t have ROIC, I used Return On Investment (ROI). This is a different metric but is the closest option there is. My screening options were as follows:

• ROI of 25% or higher
• Net profit margin of 25% or higher
• Market cap of 2 billion or higher
• Positive dividend
• Average trading volume of 1 million

So the important values are the ROI and net profit margins. However to give me some more established companies I also made sure that they have a market cap of 2 billion or more, enough trading volume and a positive dividend. This last option as a soft guarantee that the company is free cash flow positive.