My Portfolio Allocation: Recent Changes and Reasoning
Dear CMQ Investors,
A number of you have asked about how I’m personally allocating my capital right now. Below is the full breakdown of my stock portfolio as of April 11, 2025—across both brokerage and retirement accounts.
My Current Portfolio Allocation
The pie chart (below) represents both my brokerage and retirement accounts.
🟢 Vanguard Total Stock Market Index – VTSAX (29%)
I’ve been buying VTSAX since 2018, with weekly purchases and all dividends reinvested.
Provides exposure to the entire U.S. stock market across all sectors and market caps.
Low-cost, tax-efficient, and passively managed for consistent compounding.
🟢 Vanguard S&P 500 ETF – VOO (26%)
Market-cap weighted exposure to the 500 largest U.S. companies—primarily blue-chip businesses.
Benefits from the embedded strength of America’s most competitive businesses.
Long-term ROIC for S&P 500 companies hovers around 12–14%, with strong historical FCF yield.
🟢 Berkshire Hathaway – BRK.B (9%)
First Purchased: July 28, 2020
Diversified across insurance, railroads, energy, and public equities—minimizing downside.
Capital allocation is driven by Buffett and his team’s deep value discipline.
Tends to out-perform during bear markets.
I’m excited to see what Buffett will do with the $300+ billion cash pile
“We’d love to spend it, but we won’t spend it unless we think we’re doing something that has very little risk and can make us a lot of money.” —Warren Buffett
🟢 TKO Group Holdings – TKO (7%)
Owns the world’s top live combat sports brands (UFC and WWE), monetized through media rights, live events, sponsorships, and licensing.
46% EBITDA margins, 60% FCF conversion
CEO Ari Emanuel acquired $300.86 million worth of TKO shares so far in 2025, at an average price of $158.55 per share through pre-arranged 10b5-1 purchases.
Fan loyalty creates durable demand, while media deals scale with global reach.
Upcoming catalyst event: The new UFC media rights deal
🟢 Costco Wholesale – COST (7%)
First Purchased: August 24, 2020 (thanks to Charlie Munger)
The best retail business in the world
High customer retention via paid memberships and unbeatable pricing.
Renewal rates in the U.S. and Canada are 92.8%; 90.4% globally
When a business aligns with fundamental human behaviors like thrift and practicality, it scales naturally across borders.
🟢 NVIDIA – NVDA (5%)
Dominant in AI, data centers, and high-performance graphics chips.
ROIC of ~89% is world-class and off-the-charts efficient.
NVIDIA chips are at the core of virtually every major foundation model—from ChatGPT to open-source LLMs
Unmatched moat in GPU hardware and CUDA software ecosystem.
🟢 Apple – AAPL (5%)
First Purchased: December 23, 2014
Deep ecosystem creates high switching costs for over 2 billion active devices.
Services business adds recurring revenue and margin expansion.
Massive cash flow machine—generates over $100B in annual free cash flow.
There’s a reason why it’s the #1 position in Buffett’s portfolio
🟢 Meta Platforms – META (4%)
Owns multiple global social networks with unparalleled ad targeting capabilities.
Pivoting into AI and VR/AR through Reality Labs and Llama models.
Spends heavily on R&D, yet still produces $40B+ in annual free cash flow.
🟢 ServiceNow – NOW (2%)
Critical enterprise software for workflow automation and IT services.
Positioned to benefit from rapid growth of Enterprise AI spending
The number of ServiceNow customers with over $1M in ACV is steadily rising, signaling strong enterprise demand and platform value.
High net revenue retention rate and land-and-expand customer growth.
Renewal rate was 98% for each of the past thee years
Free cash flow increased in each of the last 5 fiscal years from $1.367 billion in 2020 to $3.415 billion in 2024.
🟢 Netflix – NFLX (2%)
Global leader in streaming with strong original content production.
Leverages data to drive content investments and subscriber growth.
Netflix owns a 10% share of TV time even in its largest markets, leaving room for significant growth.
The combination of low streaming penetration and rapid internet adoption in the Asia-Pacific (APAC) creates a rare expansion window.
🟢 Amazon – AMZN (1%)
Dominates U.S. e-commerce and cloud infrastructure (AWS).
Flywheel model drives cost efficiency, scale, and consumer loyalty.
AWS alone produces >$25B in annual operating income with high ROIC.
AWS' AI business achieved triple-digit growth year-over-year, growing three times faster at its current stage than AWS did during its early years.
Notes about My Stock Portfolio
There are 7 other individual stocks that collectively equal <3% of the portfolio. Some are long-term moonshot bets; others are residual positions from trimmed gains.
There is intentional concentration in top U.S. companies. While VTSAX and VOO overlap with my individual holdings (Apple, Nvidia, Amazon, etc.), this reflects high conviction in these long-term compounders. It’s a conscious tradeoff I accept for potential outperformance.
If you found this helpful or have any follow up questions, feel free to reply and let me know.
I’ll continue to share updates like this over time.
Sincerely,
Chris Franco (follow me on X)
P.S. Please make sure you invest based on what’s best for you.