Satellite Investment Strategy: Balancing Stability & Growth

Bite Faang
03-27

The satellite strategy combines a stable "core" (70-80% of your portfolio) with tactical "satellite" bets (20-30%) to optimize risk-adjusted returns:

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Core Assets

Purpose: Stability & long-term growth.

Examples: Broad-market ETFs (e.g., S&P 500), blue-chip stocks, bonds.

Satellite Opportunities

High-Growth Sectors :

AI/Compute : Chipmakers (e.g., NVIDIA), cloud infrastructure.

Low-Orbit Satellites : Companies driving global connectivity.

Energy Transition: Renewable tech, grid modernization.

Catalysts: Policy shifts (e.g., subsidies), breakthroughs (e.g., AI model efficiency).

Execution Steps

Define Core: Allocate to low-volatility, diversified assets.

Target Satellites: Focus on 2-3 high-conviction themes with clear catalysts.

Monitor & Rebalance : Trim winners, cut losses (e.g., -15% stop-loss), adjust allocations quarterly.

Risk Management

Limit single satellite positions to 5-10% of total portfolio.

Hedge core exposure with inverse ETFs or options if volatility spikes.

Why It Works: The core cushions against market shocks, while satellites capture asymmetric upside.

Satellite 🛰️ investment strategy + Fixed investment strategy + Rebalancing portfolio is the strategy that I use to grow my wealth.

@CaptainTiger  @TigerStars  @TigerClub  

# What Lessons Help You Stop Losing Money in Stock Market?

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Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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  • NatalieTommy
    ·03-28
    Your approach sounds well-rounded
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  • WendyOneP
    ·03-28
    valuable strategy. thanks for sharing.
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