I wanted to build a portfolio I'd never have to sell. Businesses so dominant, so essential, that I could hold them for decades and let compounding do the work.
The result is 13 positions — monopolies, duopolies, and toll booths on modern commerce. Every one of them has pricing power, excellent leadership, and cash flows that grow year after year.
| Stock | Weight | What It Owns |
|---|---|---|
| V | 7.7% | Payment rails duopoly — clips every card transaction |
| MSFT | 7.7% | Enterprise software + cloud + AI infrastructure |
| GOOG | 7.7% | Search monopoly + YouTube + cloud |
| AAPL | 7.7% | Consumer hardware ecosystem, 2B+ devices |
| SNPS | 7.7% | Chip design software duopoly — no chips without Synopsys |
| ASML | 7.7% | Literal monopoly on EUV lithography machines |
| GE | 7.7% | Jet engine duopoly, 70% aftermarket revenue |
| TDG | 7.7% | Sole-source aircraft parts, 50%+ EBITDA margins |
| FRFHF | 7.7% | Insurance float + value investing (Buffett of the North) |
| NFLX | 7.7% | 250M+ subscribers, pricing power, content flywheel |
| COST | 7.7% | Membership model, 90%+ renewal rate, fanatical customers |
| SPGI | 7.7% | Credit ratings duopoly — if debt exists, S&P gets paid |
| FICO | 7.7% | Credit scoring monopoly — every US loan uses FICO |
Equal-weighted at 7.7% each. Simple to manage, easy to rebalance.
Every stock passed three tests:
These aren't growth stocks I'm hoping will work out. They're businesses that already won.
| Metric | Quality 13 | S&P 500 |
|---|---|---|
| Expected Return | 19.4% | 12.0% |
| Volatility | 20.6% | 16.0% |
| Sharpe Ratio | 0.70 | 0.44 |
| Positions | 13 | 500 |
The S&P 500 holds a lot of average businesses. Banks with no moat, retailers fighting Amazon, commodity producers with no pricing power. You're paying for diversification but diluting quality.
Quality 13 concentrates on the winners. Yes, volatility is higher. Yes, drawdowns will hurt more. But you're getting 60% better risk-adjusted returns for that pain.
$100,000 invested for 10 years:
| Portfolio | Expected Value |
|---|---|
| Quality 13 | $589,000 |
| S&P 500 | $311,000 |
Even if Quality 13 takes a 50% crash in year one and SPY doesn't, Quality 13 still likely wins over a decade. That's what happens when you compound at 19% instead of 12%.
This isn't a free lunch. The tradeoffs are real:
If you can't stomach a 30% drawdown, this isn't for you. Go buy SPY and sleep well.
Quality 13 is a bet on business fundamentals: that monopolies stay monopolies, that cash flows compound, and that excellent operators keep executing.
It's not diversified. It's not low volatility. But it's built to compound for decades.
Thirteen businesses. Zero intention to sell.
This is not financial advice. I hold positions in the securities mentioned. Do your own research.