google.com, pub-8408169293384105, DIRECT, f08c47fec0942fa0 Couguar's eToro Investment Strategy | Investment Tales

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My eToro strategy

My primary goal is to benefit a long-term growth coming from mostly non-leveraged and diversified equity. I trade in stock only, and use (almost) no leverage.

I choose my sectors...

My investment choices are directly derived from my vision on this world. I believe that some concepts, or activities are to benefit and/or cause more growth than others because of their positive impact on productivity. I think that concepts such as sustainable energy, waste & water management, Internet-of-Things (IOT), big data, gaming, blockchain, IT-security, automation, advanced materials, hydrogen,... are strong enablers for further growth in productivity, which drives economic welfare. 

An important note to this is that it is not necessarily the companies developing those concepts that will benefit most. Best example here is blockchain. Although I strongly believe in the concept of blockchain, I don't necessarily see a future for Bitcoin. Nonetheless, companies that are adopting those technologies into their businesses, I believe, will achieve competitive advantage. 

It is therefore that I continuously scout eToro's offering in stocks for new companies which are active in one of those fields, or who incorporate new technologies. Like that, I build my investment universe of 'winners'.

and OPtimize

It is thanks to InvestExcel that I got easy access to historical stock data that brought me to my next step. I have build my proprietary VBA code in order to find, within my universe of 'winners', a portfolio which is optimised according to the Modern Portfolio Theory, aiming at an annual return of 45%, while minimising risk and keeping the maximum allocation lower than 4% of the portfolio. Leading to a minimum of 25 stocks. 

By looking within different sectors and industries, and by optimising a portfolio of minimum 25 stocks, I achieve enough diversification to feel comfortable with. 

While still developing new concepts

Although investing is not my full time job, I am continuously looking for more concepts to develop (through Excel VBA) in order to increase my returns, and solidify my portfolio by decreasing its risk. A secondary objective of eToro is to further develop my knowledge about the financial markets, and expand my reach further than stocks and MPT only. I'll keep you posted on that one.

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