Asset Allocation, Part 1: Core Positions
You really only need these 12 stocks
Readers have been asking — with good reason — for some guidance on how much capital they should throw at each stock in our portfolio. So here goes.
Core Positions
This post covers the “core” stocks, which are relatively safe and should make up a large-to-dominant part of a conservative equity portfolio. Future asset allocation posts (coming soon) will cover the mid-tiers (slightly more upside with slightly more risk) and the “lottery tickets” with high risk but extreme upside.
Each asset allocation post will also include links to the previous posts that introduced the categories (i.e., royalty companies, uranium miners) and the stocks themselves, to save you from having to root through the archives to get up to speed.
Two other things:
“Financial advisor” is a credentialed job, like doctor or lawyer, and I’m just a writer and talking head. So what follows is not professional investment advice, but an example of how a reasonable person might allocate their capital if handed this newsletter’s portfolio. I currently own all the recommended stocks and options, so we’re in this together.
Physical assets come first. These commodity stocks are for after you’ve stacked plenty of gold and silver and, if possible, acquired some food-producing land or other high-quality real estate. See:
Gold or Silver? You want both, obviously, but how much of each and why?
How You Store It, Part 1: Gold In Hand Because if you can't hold it ...
Now For The Core Stocks
These rock-solid companies and ETFs should be around for decades (unless they’re bought out for a profit by something even bigger). They won’t be 10-baggers but they should generate dividends and/or capital gains that match and probably exceed the overall market.
If you’re wondering why the big gold miners like Newmont and Barrick aren’t on this list, the answer is that they actually are, but within the gold/silver miner ETFs (GDX and SGDM) that focus on the big miners. See Buy All The Big Gold/Silver Miners With A Mouse Click.
The following posts introduce and/or analyze the core stocks:
How You Store It, Part 2: Physical ETFs
The Only Gold Stocks You Really Need
Mining Is Hard: Another Reason To Own The Royalty/Streamers
Three Quick Ways To Get Uranium Exposure
Uranium Miners: Let’s Start With Cameco
Let’s Add Some Oil Stocks To The Portfolio
Let’s Start Building That Copper Portfolio
How You Store It, Part 2: Physical ETFs
This Royalty Company Is Quietly Crushing It
Just How Bad Was Franco-Nevada’s Bad News?
How Much Of Each Stock Should You Own?
The role of these stocks in your personal portfolio depends on how much risk you’re willing to assume. If your main goal is wealth preservation rather than massive capital gains, you could build a great portfolio by just putting 8% of your cash into each of these 13 stocks. And then get on with life; check back in five years, and you’ll probably be happy with what you find.
Or, if you have plenty of physical assets and can accept a bit of risk in pursuit of big gains, you might allocate 50% to core positions and the other 50% to the stocks in the higher-risk, higher-reward categories. Posts on them are coming.
Here’s our list of core positions: