The Sunday Investor

In Part IV of Building A Bulletproof Portfolio, we make an additional to the Sample Equity Model Template and bring in Fundamental Key Metrics for the stocks in our stock universe. These act as guidelines as we optimize our portfolio to suit our individual investment philosophy. The end result is going to be one which you can describe easily in terms of risk and return, sector and stock weight limits, and the percentage of your portfolio invested in categories such as high growth stocks, dividend-yielding stocks, and average portfolio return on equity and dividend yield.

In Part III of Building a Bulletproof 2020 Portfolio, we get right into the nuts and bolts of generating a model equity portfolio using Excel’s built-in software: the Data Analysis and Solver Add-Ins. Once you have everything set up, you’ll find that it is quite easy to get started maximizing your risk-adjusted returns or minimizing your portfolio’s total risk. We provide you with a free template to get you started, and take you through the steps needed to design a portfolio which aligns with your investment philosophy.