Introducing the Ultra Portfolio at M1 Finance

May 29, 2020 m1finance ultra cap portfolio [investing]

The Ultra Cap Fund is an equal weight portfolio comprised of the 4 largest companies in the world by market cap. This M1 Finance Pie shows the portfolio - https://m1.finance/fG8FgwOlkT83.

Today on May 29, 2020 the largest four companies in the world are Apple, Microsoft, Amazon, and Google. Their services encompass all things - laptops, groceries, software, cloudspace, advertising, self-driving cars, and everything in between. They also have massive manufacturing capabilities and operate the largest and longest logistics chains in the world.

Some may say these companies are priced to perfection and growth upside is priced in. I think because they have so many eyes looking at them, they are priced at their current potential and not on their capability for innovation. This means their foray into new ideas and markets will increase their prices. Furthermore, unlike smaller companies, all the focus means there is less room for the companies to defraud investors by misstating earnings or other important information.

These companies own their spaces - Apple in cellphones and computers, Microsoft on home and office software, Amazon in retail, and Google is all over online advertising and video. They are entrenched and have a culture of innovation. They can wipe out competitors with ease. They can taking the fight to their turf, look at Amazon’s purchase of Whole Foods to to take on all of grocery. Or by throwing money at duplicating products in synergy with their stack, like Microsoft creating Teams to take on Slack.

My goal is to beat the S&P500. I have no doubt about this considering these companies are leaders of the S&P and responsible for much of its growth.

I am betting my own real dollar hard money on these companies. I have invested $25 in the Ultra Cap M1 pie and will monitor this portfolio with updates and rebalance once a quarter. If you decide to go Ultra Cap, please consider using my referral link. I’ll get $10 and you’ll also get $10. Although the minimum investment is $25 and the minimum bank transfer is $100. I don’t know how that works.