There are many ways you can combine individual stocks in a portfolio. To illustrate how well our stocks are performing, we have set up a simple portfolio strategy that consists exclusively of stocks that are proposed by our algorithm.

We launched the sample portfolio in May 2017. The performance you can find here.

Portfolio allocation

The strategy weights all stocks in the portfolio equally and holds the stocks until the next rebalancing or portfolio rotation.

Rebalancing

The portfolio is rebalanced for purchases and sales as well as once a year – end of April. Rebalancing weighs every stock in the portfolio equally.

Portfolio rotation

The algorithm has a list of high-quality stocks available. If the price of a stock falls below the BVS valuation, the algorithm recommends buying the stock and adding it to the portfolio.

The portfolio is updated each year at the end of April. This means that all holdings are sold and new stocks are added to the portfolio.

We chose April for this portfolio rotation because at the end of April most companies published their annual financial reports.

Note: Although the list of companies proposed by the algorithm is relatively stable, it may happen that certain stocks fall out of the portfolio during the April review because of the relatively expensive valuation.