The Alpha Seeking Portfolio
Within my overall portfolio, I have several stock holdings that do not pay dividends. I believe these non-dividend paying companies are creating their own secular tailwinds. I’ve lumped these together in the “Alpha Seeking” portfolio. The investment thesis revolves around companies with high growth playing in a niche where they are the biggest fish.
“Alpha, used in finance as a measure of performance, is the excess return of an investment relative to the return of a benchmark index.”
The investments held in this portfolio are designed that they will be able to beat the broader market represented by the S&P 500.
The skill-sets used to analyze these companies are quite different than traditional valuation metrics. Potential investors have been scared off by high growth but low profit companies like Amazon for decades to their detriment. I’ve missed out on some of these opportunities as well due to these same cognitive biases.
The portfolio is housed within a Google Sheet. Changes will be immediately visible. Use this page to track changes in real time.
The information presented here is for information only and should not be construed as investment advice. Always perform your own due diligence before making any investment decision.