Updated: 9 December 2025

#### A DISCLAIMER: Nothing in this post should be considered financial advice. I am not a regulated financial adviser. Any opinions expressed are for general information and entertainment only. You should carry out your own research or seek professional guidance before making any investment decisions. Trading and investing involve risk, and you may lose money. I only use small amounts of money. Personally, I think that using a risky trading strategy with large amount of money is simply gambling.

Ah… The stock market. I have never imagined I would take up trading as a hobby, and initially started doing it as a joke after a conversation with a close friend on the 11 April 2023 (that’s when I created my Freetrade account). Although this friend is usually very kind, they implied that I would not understand how to trade because I did not immediately grasp their explanation of a market-related topic. So… I decided to prove them wrong (basically, I just thought it will be funny if I end up with a better portfolio performance).

The performance of my portfolio since I started investing.

As of today, I have a Time-Weighted Rate of Return (TWRR) of 312.85%, any my friend and I occasionally use the returns to pay for a lovely restaurant meal. :)

I have used 2 methods to build this portfolio: 1. The safe aproach. 2. The outlier identification (mainly based on the current tumultuous geopolitical situation) based on performance metrics and the global news.

So first, let’s discuss part 2 since it is shorter.

2. THE NOT SO SAFE APPROACH?

This is the experimental part of my investing strategy. I basically repurpose the techniques for outlier detection (including what we do in cancer research for rare cellular subpopulations detection) focusing on standard financial metrics, and mix it with any panic-related events on the market by tracing various newspapers across the globe. Essentially, a lot of news outlets lag behind with their news coverage across different languages, and if you focus on different markets with a large time zone difference, identifying the potential candidates is doable.

1. THE SAFE APPROACH

Identify high quality shares.

Many investors have become caught between optimism and anxiety as valuations rise during the artificial intelligence boom. Optimists argue that the current revolution justifies higher prices, while pessimists assume a bubble will eventually burst. The difficulty is that there are few attractive alternatives, and most other assets do not look cheap either.

A rare opportunity has appeared in global financial markets. High quality companies now offer strong potential returns regardless of how the excitement around artificial intelligence develops. Quality shares are defined by stable earnings, dependable profits, and limited debt. Historically they have produced strong returns and held their value during difficult periods.

Only one in five large companies worldwide meets this standard. In ordinary conditions the most popular strategies focus on growth or value. Recently, quality has been overlooked because value and growth have dominated attention. Over the past year, quality shares have declined in many developed markets and have lagged behind broader indices by a noticeable margin.

In the United States, where stock prices remain high, quality shares are still priced at a premium. However, in other regions they have traded at a discount, especially where investors reacted nervously to rising interest rates and weak liquidity. As a result, many shareholders have avoided companies with dependable characteristics in favour of speculative positions.

Recent signals show a preference for gold and cautious assets, which implies growing uncertainty. A sensible way to respond is by buying reliable companies rather than those driven by fashion. Quality investing has clear advantages. I screened companies for strong cash flow, predictable returns and sensible use of funds. I excluded those with small size, unstable growth or unusual practices such as excessive executive compensation.

This approach identified around four hundred companies around the world that currently trade at appealing valuations. They include many firms in the United States, China and Hong Kong, as well as clusters in Europe, Brazil, India and South Africa. Sectors such as financials and consumer goods are especially prominent. The leading ten per cent of these firms generate higher cash returns than the market with less volatility and stronger balance sheets.

The case for buying such companies is compelling. They appear attractively priced for the first time since the early two thousands. While investors concentrate on a narrow group of fashionable technology names, this collection of high quality firms offers a more durable and reliable way to benefit from equity markets.