Welcome to the second edition of the NAPS Top Stocks Australasian edition. The No-Admin Portfolio System (NAPS) portfolio has been running in the UK for the last nine years and has demonstrated how consistent overall performance can be achieved with little intervention.
The entire philosophy behind Stockopedia.com is not to 'tip' stocks. This is because we believe we don't need to. The history of stock market returns shows that simple rule-based stock picking models have been far more consistent and effective than human forecasts.
So don’t view the NAPS portfolio as a tip sheet. It is constructed using a simple rules based approach with only minimal discretion. It is purely for the purposes of education only and does not reflect an actual portfolio.
How you create and manage your portfolio is entirely up to you.
NAPS is a 20 stock portfolio from the highest StockRank™ stocks, diversified across sectors, rebalanced annually. It’s a “select once, leave for a year portfolio” that requires no more than an hour to put together.
Portfolio Rules
Diversified Portfolio
To ensure a well diversified portfolio we select two stocks from each of the broad economic sectors as identified by Stockopedia. We select the two highest StockRank™ from each sector and add it to the portfolio. That’s it!
However in order to ensure that our Australasian NAPS portfolio’s diversification reflects that of the Australasian market, we have included a separate sector, Real Estate in acknowledgement of its size and contribution.
Further, given their smaller size we have only selected one stock from each of the Telecoms and Utilities sectors.
In total the portfolio has 20 stocks spread across a diverse range of economic sectors and all with high ranking StockRank™ (QVM) scores.
Average daily trade of $50,000
There are a number of stocks in Stockopedia who have exceptional qualities, however do not provide a realistic option for investors seeking to take a position.
The lack of liquidity in their stock means spreads are huge (assuming there is enough stock available to take a position) and therefore any trading price you are forced to take may not reflect the qualities of the business.
In order to overcome this problem, stocks in our portfolio must meet a basic screen that they trade on average above $50,000…
