My Portfolio Valuation Matrix: Finding the Best Risk-Reward Plays
Let's figure out where I will reinvest the proceeds from my recent sale
After recently selling one of my core positions, I now have a significant amount of cash waiting to be reinvested. Instead of rushing into new opportunities, I want to take a structured approach by reassessing my entire portfolio’s valuation before making my next move.
In this post, I'll walk through my valuation matrix, which includes key metrics like:
Potential Internal Rate of Return (IRR) – My normal IRR model, taking growth, margins, capital return and valuation multiples into account.
Adjusted IRR – Stripping out multiple expansion/compression to focus purely on fundamental growth.
Quality Score – The results of my internal ranking of each company’s long-term business strength based on 13 metrics.
Once I’ve compared all my holdings, I’ll take a deeper dive into seven standout opportunities and assess where I see the best risk-reward moving forward. Let’s dive in!
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