Week 1 – Allocation Strategy Check
When building this portfolio, I follow one rule. I only allocate meaningful capital to businesses whose cash flows I understand.
Comfort Systems is a core position not because it is popular, but because it consistently turns capital into cash. ROIC is solid and growth is not overly priced. That is where I am willing to size up.
For semiconductors, I use SOXL as a cyclical tool, not a long-term holding. When expectations are already priced in and PEG is no longer attractive, I reduce exposure.
Western Digital is a typical cycle play. Sentiment moves quickly, but I focus on capital allocation and cash flow, not short-term price moves.
NVDA and PLTR are small tracking positions. NVDA has strong growth but little margin of safety. PLTR is still more story than cash flow, so there is no urgency to add.
My gold position is down, but it is not meant to generate returns. It serves as a buffer when the market overheats.
I can accept missing opportunities and volatility, but not taking large positions without a margin of safety.
#My Portfolio Health Check
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