Working Beetle

Happy New Year

We end 2025 with a review of the Millikan portfolio.  Thus far this portfolio is performing very well and the expectation is that it will continue upward under the revised asset allocation model.  This morning I sold all shares of VOO as I no longer desire extensive exposure to mega-cap AI stocks that dominate the S&P 500.  While stocks such as NVDA may continue to rise, the P/E ratio is priced for perfection.

Millikan Asset Allocation Model

Below is the revised asset allocation model for the Millikan.  This is my first dip into Bitcoin (BTCO).  It is a small holding, more of an experiment at this point.  I also positioned Gold (GLD) as a 10% holding.

Small- and mid-cap holdings are present in the form of VO and VB.  These ETFs provide exposure to both value and growth equities.

Millikan Rebalancing Recommendations

The current asset classes are nearly in balance or very close to the target percentages.  All ETFs with a Buy recommendation are within one percentage point of the target.  That is the goal for the Millikan.  Limit orders are in place to add more shares of BTCO and VEA.  By the next review, scheduled for January, the Millikan should see all asset classes in balance.

Millikan Performance Data

Since 12/31/2021 the Millikan has out-performed the AOR benchmark by a wide margin.  With the current diversification, it seems unlikely the Millikan will be able to close the gap on SPY (S&P 500).

Millikan Risk Ratios

All four risk measurements are well ahead of where they were a year ago.  There has been slippage in the Jensen Alpha over the last few months.  I’m not too concerned since any value over zero is considered to be a winner and 4.56 is a very high value.

Comments are always welcome.

Wishing all readers a peaceful and prosperous 2026.  It is likely to be a volatile year so prepare accordingly.

Lowell