Investing

Portfolio treemap: Your help is welcome!

Inspired by Engineering Dividends (who in turn was inspired by Young Dividend) I analysed my own portfolio and created a treemap based on sector and total current value of the stocks I own. I’ve spent some time in the past to check on my sector allocations, but not recently. This graphical way is a lot easier! 🙂

treemap_augusts_2020

There is a lot to be learned from this graph:

  • My largest sectors are healthcare, Information Technology and Consumer Defensive.
  • From these largest sectors Healthcare is the most diversified with 8 companies, followed by IT (6) and Consumer Defensive).
  • The next four sectors Real Estate, Industrials, Communications Services and Financials are quite evenly divided in value.
  • Real Estate shows 5 companies, while the others consists of three companies each, all somewhat evenly balanced except for DIS.
  • Next in size is Consumer Staples, consisting out of three companies which are roughly equal in size.
  • Utilities and Concsumer Cyclical are the next sectors comparable in size, here there is a small diversifcation in Utilities, there is none in Consumer Cyclical with only LEG there.
  • The smallest sector is Consumer Discretionary with only a small position in VFC.
  • The difference in value between my three largest sectors and three smallest is quite large.
  • I’m missing 2 out of the 11 GICS: Energy and Materials.

Here is my question to you:

“What suggestion / pointer / remark / can you give me based on the above diagram?”

And a small disclaimer: I’m not taking your comment as investing advice, I’m looking for opinions!

I would love to read your comments!

6 thoughts on “Portfolio treemap: Your help is welcome!

  1. Looks great, Mr. Robot. You knocked the treemap out in no time, so you must have found it to be relatively easy to create.
    Lots of blues and greens in your treemap. Did you create it that way, or was that just what got created by default?
    I like that Healthcare and Technology are you biggest sectors. They should provide some nice growth. I need to beef up my Healthcare holdings a bit.
    Nice work.

    Liked by 1 person

    1. Hi ED, thanks! I could export my portfolio at my broker and import it in Excel to create the treemap. Using the default treemap function (you made need to download the template) you can select multiple color schemes.

      Do you have any tips for me based on the treemap?

      Like

  2. Excellent visualization Mr. Robot! There are a couple of things that catch my eye. Instead of 9 GICS sectors you show already 11 segments. It seems that you have splitted the GICS Consumer Staples sector, adding Consumer Defensive and Consumer Discretionary adding Consumer Cyclical. I like your diversification between sectors. Maybe because Technology, Healtcare and Consumer Staples/Defensive are also my top 3 sectors :). Within sectors I see you prefer certain subsectors. For instance, your Financials only contain insurance stocks, not counting UNH. FDX/UPS is another example. It is understandable that you don’t want to include a bank at the moment. But adding a fintech like V or MA comes to mind. I guess your strategy is picking undervalued blue chip dividend payers with a proven track record, preferably non-cylical. Consequently, your strength is a low beta and low risk profile. None of your stocks look insanely overvalued. And your dividends seem not to be in danger (IRM highest). On the other side you might have missed some nice rushes. Your portfolio relies heavy on US stocks and they all pay nice dividends. You could consider adding European/Asian stocks and a growth stock. In the Materials sector I am very happy with EMN and ALB, and missed buying LIN and DSM. My best tip would be to look into gold- and silverminers. Some even pay small dividends :). The gold rally is firing on all cylinders and I believe for many years to come.

    Liked by 1 person

    1. Those are some really informatieve suggestions and conclusion regarding my portfolio 🙂 I’ve already looked at some materials stocks (like ALB) and both gold/silver stocks but not have made any buys (yet). Both of these investigations were triggered thanks to your blog 🙂

      My latest investments have been in non_US stock, namely Wolters Kluwer and I’m planning to add more non-US as currently it indeed relies very heavily on US-stocks. I’m a somewhat more conservative investor (except for my crypto’s and IRM :)) so I’m not really worries about losing out on some of the rushes.

      Thanks for your time and extensive comment!

      Like

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