Inside the Portfolio #1 Stocks That Set the Foundation
These stocks contribute to the portfolio's balance and outperformance. The Financial X-Ray identifies businesses whose economics remain remarkably difficult to break.
Since launching the Financial X-Ray Selection Portfolio in June 2023, one question has appeared more often than almost any other.
Which companies form the basis of the portfolio and survive the rigorous quality assessments year after year?
The Financial X-Ray Selection has outperformed the MSCI World since inception while maintaining a focused portfolio of 38 holdings.
I don’t see that as proof that the framework is infallible, markets have a habit of humbling anyone who thinks they have found certainty.
Instead, I see it as evidence that applying the same disciplined process to every business, month after month, can produce strong long-term outcomes.
The conviction is simple: I don’t focus on intense trading or on chasing hype. Instead, the approach is to buy quality stocks at decent prices - or put differently, buy stocks with an X-Ray Score of “strong”.
The 38 current portfolio holdings and weights are accessible on the website. The Financial X-Ray reports provide 100% transparency on the methodology and every metric analysed, so you understand why each stock deserves a seat at the table.
The more interesting observation this month, however, wasn’t a new addition or a removal.
It was how little changed among several of the portfolio’s longest-standing businesses.
Every month the framework reviews every holding from scratch. Past performance carries no weight. A company stays only if its financial health, management, growth profile and valuation continue to justify its place.
That naturally raises a broader investing question.
What makes a business durable enough to become the foundation of a long-term portfolio?
Behind the paywall, I’ll explain why that question matters far more than trying to predict the next market winner, and why three very different companies –Visa, Procter & Gamble and Travelers – illustrate how the Financial X-Ray distinguishes between temporary quality and enduring quality.
