Our re-organized S.W.A.T. portfolio: Part 3

I continue to emphasize my portfolio management framework:

Themes → Risks → Picks → Hedges → Speculation

…because this is a learning substack…a teaching substack. Many of my readers are college and high school students who want to learn how to invest.

In the daily market craziness, sitting in front of my screens, it is easy to forget this. I need to remind myself of what we are doing here…why we invest.

Every year, around this time, we adjust and pivot our portfolio towards the next 12-18 months…yes, well in advance. This proactive strategy has enabled us to deliver market-leading returns which are posted here….an average annual return of +141% at a CAGR of +43%.

For example, for 2025-2026, we identified specific AI sub-sectors that would dominate along with a few other themes that almost no one was talking about. We bought stocks like ALAB and BE in the $30s and $40s and MRVL in the $70s and rode them higher for sweet multi-bagger gains. Our barbell-hedge, non-tech positions have served as a critical balancing force in this year’s extreme volatility returning up to +77% along the way and helping our portfolio hit YTD all time highs this week.

Now we are doing it again…looking forward, planning ahead and tweaking our portfolio today to ensure long term gains without heed to short term fintwit rah-rah and FOMO noise.

We like to sleep well at night…this is the S.W.A.T. way.

Here is the chronological list of posts in this series that follow our line of thinking and plan of action:

Map of 4-5 quarters starting in Q4 2025

Beachman plan for Q2 and Q3

Top questions to frame up our pivot exercise

Five strongest secular tailwinds in the US economy

Our updated macro forecast for Q2 and Q3 (same post as above)

We have already started putting money to work in these new directions. Every earnings cycle, we get fresh business performance information on stocks that we own. It allows us to also find other stocks that meet our high bar for fundamental strength, growth potential and attractive valuation. My shopping list is ready and we recently added 4 new stocks to our portfolio….two of them in the last few weeks…we even exited 2 positions that did not meet our current needs.

Today, we will dive deeper into our re-organized S.W.A.T. portfolio…including our six investment sectors.

Welcome to Beachman AI’s Investing Whispers, where we invest in market-leading stocks and ETFs with Beachman’s proven long-term record and a lower risk approach. Over the past 6 years, our structured investing has delivered an average annual return of +141% at a CAGR of +43%.

Our chat line is open to all readers. It is now FREE to join in daily discussions about markets, investing and trading. Use this link to chime in on the conversation: Beachman’s Chat Line

For Beachman’s other portfolio, check out Beachman’s Salty Trades, with 5 multi-bagger picks cooking, using bottoms up research and technical signal based trade ideation and execution…where we recently logged our 22nd multi-bagger stock and trade gains of up to +69%.

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• Our re-organized S.W.A.T. portfolio

• Coming up next

So let’s dive in…..

Over the next 12-18 months, I want to allocate my capital towards sectors and specific sub-sectors that I think will provide the highest ROI…without chasing pure momentum stocks that swing +/-10% on a daily basis due to short term trading.

When a stock swings that much every other day, every week…it is actually a sign of weakness in that stock and in the market overall.

Here are my sector / sub-sector choices including target % allocations:

I have 4 main groups and 2 barbell hedge groups…