Our Portfolio Returned 26%. Here’s What We Did - An Honest Review.

📊 The Art of Investing Survey – Fill in the form here, we’d love your feedback: https://forms.office.com/e/tCyxzN48Ks 📈 Download the full Portfolio Performance Slides View the portfolio breakdown: https://drive.google.com/file/d/1x90bFTzR9Sh4g2-WLw4GiHu_JWMEjsRc/view?usp=drive_link 📧 Get in touch: [email protected] 📱 Behind the scenes: @_theartofinvesting on TikTok 🎧 Apple: https://podcasts.apple.com/gb/podcast/the-art-of-investing/id1825201965 🎧 Spotify: https://open.spotify.com/show/4bmvfbDz2kniwxCL66sVjH This week on The Art of Investing, it’s the end-of-year exam as the portfolio officially reaches its first anniversary. With the portfolio finishing the year up 26.0% since inception, Rich puts Mark and Chris in the hot seat to assess how much of that performance came from good portfolio management, where they got it wrong, and the lessons they’re taking into year two. The team revisit some of the biggest investment calls of the past 12 months, from avoiding government bonds and maintaining exposure to commodities, to navigating the Iran conflict and buying back into US equities following the sell-off. They also look ahead to the next 12 months, debating whether the AI investment boom can continue to drive US earnings, what could finally challenge US market leadership, and why rising bond yields and a changing Federal Reserve could become increasingly important for investors. Alongside the annual review, Mark unpacks another busy week across markets, with AI investment continuing at extraordinary levels, oil prices climbing and the portfolio ending its first year with another positive weekly return. This Week’s Highlights: 🎂 One Year of the Portfolio The team mark 52 weeks of the portfolio, finishing its first year with a total return of +26.0%. 📝 The End-of-Year Exam Rich grills Mark and Chris on their best calls, biggest mistakes and whether the portfolio’s performance really came down to skill or a favourable year for markets. 🤖 The AI Investment Boom Continues Huge financing and capital expenditure commitments keep flowing into AI and data centres, but the team debate whether investors are becoming too reliant on the same story. 🇺🇸 US Bull Case Put to the Test Mark explains what would genuinely make him rethink his bullish stance on US equities and why earnings growth remains central to his outlook. 📉 Why the Team Avoided Bonds Staying away from government bonds is identified as one of the portfolio’s defining calls of the year, differentiating it from a traditional 60/40 approach. 🌍 Where Could Returns Come From Next? The team assess the outlook for the US, Japan, emerging markets, the UK, Europe, India and China as they consider positioning for year two. 🏦 A Changing Fed Could Change the Rules Chris explains why the Federal Reserve’s approach to supporting markets could become one of the most important risks to watch over the coming months. Portfolio Snapshot - Week 52: 📊 Weekly portfolio performance: +0.5% 📈 Total return since inception: +26.0% 📅 2026 year-to-date return: +13.5% Top Performers: 📈 BlackRock World Mining Trust PLC: +3.3% 📈 iShares Nikkei 225 ETF: +2.7% 📈 Vanguard FTSE 250: +1.0% Underperformers: 📉 iShares MSCI India ETF: -1.4% 📉 WisdomTree Copper ETF: -1.0% 📉 iShares Core FTSE 100 ETF: -0.5% Portfolio Changes: No portfolio changes this week. The portfolio closes out its first year with 14 holdings, including 10% in cash, as the team maintain their existing positioning heading into year two. Big Questions This Week: • How much of the portfolio’s 26% return came from good management versus rising markets? • What were the team’s best decisions, and biggest mistakes, of the past year? • What would make Mark finally change his bullish view on US equities? • Can the enormous investment in AI and data centres ultimately justify current expectations? • Could higher bond yields eventually pull capital away from equities? • Where could the strongest and weakest investment opportunities emerge over the next 12 months? What You’ll Learn: ✔️ Why avoiding government bonds became one of the portfolio’s most important calls ✔️ How the team assess performance beyond simply looking at headline returns ✔️ Why earnings growth remains key to the US equity bull case ✔️ How experienced investors respond when markets move sharply against them ✔️ What could trigger a major change in the portfolio’s asset allocation ✔️ Which markets and asset classes the team are watching as they enter year two Disclaimer: This podcast is provided for educational and informational purposes only. The content presented is not intended as personal investment advice or a recommendation to buy, sell, or hold any particular securities or investments. All discussions regarding the model portfolio are illustrative and for educational purposes. Your capital is at risk. The value of shares, ETFs and ETCs can fall as well as rise, which could mean getting back less than you originally put in.