u/Legitimate_Risk_1079

This is separate from my 20 company dividend stock challenge. Just to show I'm not a one-trick pony.

About a month ago, I started buying 11 non-dividend-focused stocks that I believed offered attractive risk/reward opportunities. Unlike my dividend portfolio experiment, I wasn't specifically looking for income. I was looking for companies I believed were undervalued, growing, or positioned to benefit from long-term trends.

Within three past thirty days, those 11 picks are up approximately 11.5% collectively.

I'm not posting this because I think 30 days proves anything. It doesn't. A strong month can reverse quickly, and eventually some of these picks will be wrong. I'm posting it because I believe there's value in putting the companies out there publicly and then coming back later to show what actually happened.

The 11 companies are:

1. TSM — Taiwan Semiconductor

2. NEE — NextEra Energy

3. TOL — Toll Brothers

4. HBM — Hudbay Minerals

5. QURE — uniQure

6. NOK — Nokia

7. ONDS — Ondas Holdings

8. NU — Nu Holdings

9. CIFR — Cipher Mining

10. HOOD — Robinhood

11. KTOS — Kratos Defense

It's a pretty diverse group: semiconductors, utilities, housing, copper, biotech, telecommunications, drones, digital banking, Bitcoin/AI infrastructure, fintech and defense.

Most importantly, I'm not trying to find 11 rocket ships. For the most part, I'm looking for actual businesses where I believe the fundamentals, growth potential and valuation give me a favorable probability of making money.

There are exceptions. ONDS, QURE and CIFR, for example, carry considerably more risk than something like TSM or NEE. I treat those positions accordingly. Not every company deserves the same amount of capital simply because I like the opportunity.

My goal isn't to be right on every stock. That's unrealistic. The goal is to control the damage when I'm wrong and allow the winners to make up for it.

11 non-dividend stocks. About 30 days. +11.5% collectively.

It's a great start, but 30 days is just that: a start. I'll continue updating the results publicly, including when some of these picks inevitably don't go my way.

Let's see where the same 11 companies are several months from now.

Disclosure: I own positions discussed above. This is for educational purposes only, not financial advice.

Article with the time stamp,

https://legitimaterisk.substack.com/p/this-weeks-top-11-stocks-five-free?utm\_source=share&utm\_medium=android&r=8pfry2

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About a month ago, I posted this $1,000 challenge portfolio here. The idea was simple: instead of chasing whatever stock was hot that week, I wanted to see what would happen if I spread $1,000 across 20 dividend-paying companies that I believed were undervalued.

I also wanted to make the experiment public so there was no hindsight involved. The original list was posted before I knew which companies would outperform and which ones would disappoint.

30 days later, the portfolio is up 6.24%.

The account is currently worth $1,084.50, including additional funds/dividends reflected in the account, with the brokerage showing +$63.73 (+6.24%) over the past month.

The original 20 companies were:

1. DOW — Dow

2. BDX — Becton, Dickinson and Company

3. GSK — GSK plc

4. MDT — Medtronic

5. PEP — PepsiCo

6. ELV — Elevance Health

7. CVS — CVS Health

8. PFE — Pfizer

9. BMY — Bristol Myers Squibb

10. WPC — W. P. Carey

11. LNC — Lincoln National

12. BEN — Franklin Resources

13. USB — U.S. Bancorp

14. STX — Seagate Technology

15. ADM — Archer-Daniels-Midland

16. KEY — KeyCorp

17. T — AT&T

18. VZ — Verizon

19. KHC — Kraft Heinz

20. NEM — Newmont

What interests me isn't really the 6.24%. Thirty days is far too short to declare victory on an investing strategy, and this portfolio will eventually have periods where it underperforms.

What I wanted to test was whether a diversified basket of beaten-down, dividend-paying companies selected primarily on valuation and fundamentals could produce competitive returns without relying on a handful of high-growth momentum stocks.

So far, the answer has been encouraging.

There have already been clear winners and laggards. STX has recently been one of the strongest movers, while other positions have contributed much less. That's exactly why I used 20 companies instead of trying to guess which two or three would perform best.

Diversification wasn't supposed to eliminate losers. It was supposed to make being wrong about a few companies survivable while allowing the stronger picks to pull the portfolio forward.

I'll keep posting updates whether the account is green or red. The more interesting test isn't what happens in the first 30 days. It's whether this portfolio can continue producing respectable total returns over 6 months, 12 months, and eventually longer while collecting dividends along the way.

For the value investors here: which of these 20 would you be most comfortable holding for the next five years, and which one would you remove today?

Original Post, https://www.reddit.com/r/ValueInvesting/s/WPijItCsXM

https://substack.com/@legitimaterisk/note/c-314871671?r=8pfry2

Here's the full list, up 4.8% vs SP500 -0.04%

1. DOW (Dow)

2. BDX (Becton, Dickinson and Company)

3. GSK (GSK plc)

4. MDT (Medtronic)

5. PEP (PepsiCo)

6. ELV (Elevance Health)

7. CVS (CVS Health)

8. PFE (Pfizer)

9. BMY (Bristol Myers Squibb)

10. WPC (W. P. Carey)

11. LNC (Lincoln National)

12. BEN (Franklin Resources)

13. USB (U.S. Bancorp)

14. STX (Seagate Technology)

15. ADM (Archer Daniels Midland)

16. KEY (KeyCorp)

17. T (AT&T)

18. VZ (Verizon)

19. KHC (Kraft Heinz)

20. NEM (Newmont)

Part1,

https://www.reddit.com/r/ValueInvesting/s/s5xIqFwbNz

Part2, https://www.reddit.com/r/ValueInvesting/s/G2zfOjkzAD

Company list,

https://www.reddit.com/r/TheRaceTo10Million/s/pDthkznO1u

Algorithm used to help assist picking the companies,

https://www.reddit.com/r/TheRaceTo10Million/s/W4EeSZJ0L5

Currently up 4.8% in the past 30 days vs. SP500 -0.04%

Would love to attach an image but for some reason this forum does not support it.

https://substack.com/@legitimaterisk/note/c-303560125?r=8pfry2

Part1,

https://www.reddit.com/r/ValueInvesting/s/s5xIqFwbNz

Currently up 3.21% in the past 30 days vs. SP500 -0.04%

Would love to attach an image but for some reason this forum does not support it.

https://substack.com/@legitimaterisk/note/c-299738279?r=8pfry2 (A few hours outdated, close enough)

You can find him on AfterHour app. If you're looking for options, try following @terridactil, she has over 90% win rate.

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That's exactly what people said before many of the market's biggest winners kept climbing higher.

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I don't chase hype, but I do add to my winners. If a company continues to execute, grow earnings, and strengthen its business, a higher stock price alone doesn't make it a bad investment. In fact, some of my best returns have come from averaging up into high-conviction companies rather than averaging down into struggling ones.

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The market often rewards strength. I'd rather own more of a great company proving me right than throw more money at a weak company proving me wrong. That's the power of averaging up into your winners. 📈🚀

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🚂 Choo choo! Next stop: financial freedom. While the market spent the day backing up the station, my little $1,000 Challenge Dividend Portfolio kept rolling down the tracks. No fancy leverage, no crystal ball, just quality companies, dividends, and patience. It may not be the fastest train on the rails, but today it's carrying a lot more passengers than the Market Express. 🚂💰📈

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I tested this method myself, and it was a crazy ride. In one month, I bought 30 to 40 different stocks. There were plenty of ups and downs, but in the end it worked out well. I'm sharing it with you because it can also be used to find good companies for swing trades and long-term investing.

The keyword here as you see in the picture below, is a company that beat its last two earnings. To me that means it's a company that continues to outperform, yet is undervalued.

Proof:

https://afterhour.com/Legitimate\_Risk/UQF/big-boyz-buyz-update

Shares only, no options

Over the last 3 years, my average yearly return has been $156,000.

This year alone I’m already at $61,000, with an average monthly return of around $12,000. This also takes into account the March downturn.

But what matters most to me is helping others grow.

In April, after taxes and expenses, the Discord paid me $450 for my time investment. An average of about $4 an hour.

In May, after taxes and expenses, the Discord paid $640.

Seeing people learn, grow, and become more confident with their finances means more to me than the money ever will. I truly care about helping people become successful, and if I can help change someone’s future through investing and knowledge, that’s worth more than any paycheck.

Back in 1999 I was out here feeling like a king owning a Riva 128 and TNT2 graphics card.

Meanwhile, if I would’ve bought just 10 shares of NVDA instead of flexing those video cards… those shares would be worth around $1,053,600 today.

Moral of the story:

The real FPS boost was the stock portfolio we ignored along the way. 😂📈

If you would have invested into these companies on December 19th last year when I did, you would have been up 30% today. In comparison if you would have kept your money in s&p 500 your return In the same time frame would have been up 8.3%. Typically my investments return up to 5% per month, a bit less during bear markets. The goal is to beat the market every year 2x to 3x.

Ticker, Dec19 price, return%

$RKLB, $70, 79%🔥

$PL, $19, 116% 🔥

$LLY, $1071, -6%🐒

$SLV, $60, 15%

$ASML, $1056, 42%🔥

$ONDS, $9, 17%

$COKE, $166, 2%

$FDX, $288, 30%🔥

$RIO, $$78, 33%🔥

$JNJ, $208, 9%

$DAL, $71, 1%

Total: + 30% 💲

Investing is #1 top tier way to grow your portfolio long-term

A team member asked me over the weekend, “Why should I invest when my account is small? Shouldn’t I just trade options?”

My answer was simple. A small account is actually the best time to learn how to invest the right way. When you eventually land a higher paying job and your account starts growing, you’ll already know how to manage money, control emotions, and stay profitable.

Too many people wait until they have a large account before learning discipline. By then, mistakes become much more expensive.

There’s nothing wrong with trading some options while you’re learning, but don’t overdo it. Make sure you still keep money available to practice smart investing and building strong habits.

Our Boi sure was thirsty for some trades today