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Highlights
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This week’s aim is to bring you some key discussion points from our 12/5/2024 Member Open Forum. In particular, there was an extended discussion on our Legacy Top 5 Model Portfolio, which was recently closed, and how we are replacing this model portfolio with the new Open Forum Focus Model Portfolio.
Launched in 2019, the Top 5 Faves Model Portfolio was designed to showcase GeoInvesting’s highest-conviction stock ideas, offering members a curated selection (from a larger list of favorites) of actionable investment opportunities with what we felt to have strong longer-term multibagger return potential.
As we already touched on, over its five-year run, the portfolio delivered strong results, generating a total average closing return of approximately 203.81%. This outperformed the Russell Microcap Index by 126.38% over that duration, even after taking into account the poor performance from a few stocks that got caught in the transition of investors putting greater emphasis on deploying capital into value stocks (earnings and cash flow matters most) vs. traditional growth stocks (high revenue growth matters most).
However, it’s worth pointing out that even the worst 5 underperforming stocks were up handsomely at their peak returns during their tenures in the model portfolio, for an average of 96.98%.
The decision to close the portfolio comes in tandem with our new high conviction Model Portfolio launched in 2024, Focus Model Portfolio, aligned with the shifting dynamics of investors’ focus to value investing and quality, where earnings matter. It also simplifies our Model Portfolio structure.
As we continue to adjust to the evolving market landscape and subscriber feedback, we believe it is prudent to focus on more impactful investment strategies through a main high-conviction portfolio that we’ve been building on a monthly basis through our Live Monthly Forum Events.
The core approach and philosophy that guided the Top 5 Faves Portfolio selections will remain intact, but with a greater emphasis on quality.
We also talked about the Buy on Pullback Model Portfolio being our other high conviction portfolio.
By focusing on this more unified structure, we are offering members a clearer and more efficient way to access our highest-conviction ideas while maintaining our emphasis on identifying high-return opportunities…
To Hear us Expand on this, Our overall Model Portfolio Approach, New calls to action associated with our high-conviction Model Portfolios, and gain Exposure to our expanded coverage on Our 1500+ Microcap Universe, Subscribe below.
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