CPM Investing LLC - Research and Investment Publications
Please see note on Success Factors for users of our model portfolios.
Sapphire is for those who are comfortable trading Focused 15 Investing portfolios and are comfortable with the 3x leveraged ETFs "UDOW" and "TYD." Portfolios 1-6 vary only by their aggressiveness; they hold the same ETFs. They are listed by increasing expected return.
The main portfolio on the publication is " Sapphire|Onyx 25|75 (MAIN) - 4 ETFs (sg325.1)." This is suitable as a long-term portfolio because it has a high return-to-variability ratio compared to others on the publication, has a high return compared to the DJIA, and a level of variability that is about halfway between the DJIA and VBINX.
Please note that in the sg number, the ".1" refers to the version number. From time to time new ETFs may be added and the new portfolios will get a different version number. The next version will be v2, and the main portfolio on the publication will be sg325.2. It may include the Commodities ETF "GSG."
If you have a short time horizon, select a portfolio that is less aggressive than this for your long-term portfolio. If you have a longer horizon, select one that is more aggressive.
Portfolio 7 can be used when you want to reduce trading, such as when you are in vacation; the portfolio trades just once a month.
The Sapphire publication is designed for people who currently know how to trade ETFs or can learn over the course of a few weeks. For information about setting up an account and trading ETFs, please see this LINK.
Developing a solid understanding of the Focused 15 Investing investment approach is also important preparation before using the Sapphire publication. For information about the investment approach, please see this LINK. Also, feel free to reach out to us with specific questions.
Selecting a Model Portfolio on Sapphire Publication
When selecting a Sapphire model portfolio, select one that has a level of expected variability similar to or lower than your current investments. Use the selected model portfolio to get accustomed to the trading and volatility of the individual ETFs. When you are comfortable trading and want to use a more aggressive portfolio, shift to the more aggressive portfolio, if you wish, during a Plant season.
For Those with Experience With Other Focused 15 Investing Portfolios
If you have been using the Focused 15 Investing Diamond publication, find the level of variability of the Diamond portfolio you have been using on the first page of the weekly publication. For example, if you have used Diamond (sg131)'s variability over the years, you can consider using the Sapphire portfolio(s) with similar levels of variability. Diamond (sg131) has a variability of about 16%. Sapphire|Onyx 35|65 (sg335.1) also has variability of about 16%.
For Those with Accounts Invested in Mutual Funds
If you are just getting started with Focused 15 Investing, consider the asset allocation of the investments that you used most recently. Asset allocation mix has a large impact on variability in most traditional investment programs. The asset allocation mixes for commonly available alternatives are:
If you are using a fund similar to VBINX, consider these options:
If you are using a fund similar to VASGX, consider these options:
If you are using a fund similar to DJIA, consider these options:
For Those New to Investing
If you are new to investing, start with the least aggressive portfolio, Sapphire|Onyx 5|95 (sg305.1). Trade that portfolio for a several weeks until you are comfortable with the trading patterns and ETFs before switching to a more aggressive portfolio. If you do switch to a more aggressive portfolio, do so during Plant seasons.
This link describes the different performance characteristics of the portfolios on the Diamond, Sapphire, and Zircon publications, Link: Comparison of Diamond, Sapphire and Zircon.
This link describes the Plant-Wait-Harvest seasons, Link: Plant-Wait-Harvest.
PO Box 878, Summit, NJ 07902, USA
Copyright © 2014-2022 CPM Investing LLC - All Rights Reserved.
Focused 15 Investing and Market Resilience Index are registered trademarks of CPM Investing LLC