Moofolio Vision- Three stocks to beat the world

This article discusses the performance of three model portfolios created in September 2025.

The core and satellite approach to investing is as popular as it is powerful. US stocks have led the world for more than two years now. Yet our top performer this week is the three stock portfolio (+7.10%), demonstrating once again that successful investment approaches do not need to be complex and difficult.

Returns since inception

Just three stocks – $ANZ Group Holdings Ltd (ANZ.AU)$, $BHP Group Ltd (BHP.AU)$ and $Wesfarmers Ltd (WES.AU)$. One bank, one global miner, one diversified industrial/consumer exposure form a portfolio that broadly mimics the $S&P/ASX 200 (.XJO.AU)$ index. However, all three of these stocks are considered “blue chips”. They are among the biggest listed companies and are considered higher quality businesses.

This does not mean that blue chip stocks only go up – the 10.2% fall in Wesfarmers over the life of the portfolio shows even blue chip share prices have periods of underperformance. However the 13.3% catch up by ANZ, and the 11.6% gain in BHP as global commodities proved resilient has pushed the portfolio performance to the top of the table:

The three stock portfolio return vs benchmarks

Percentage returns since September 2025

The orange line is the performance of the three stock portfolio, compared to the $S&P/ASX 200 (.XJO.AU)$ (dark blue), the $S&P 500 Index (.SPX.US)$ (light blue) and the $NASDAQ (NASDAQ.US)$ (grey). The chart shows that the three stock portfolio underperformed initially, but since late November has come back strongly.

This strength in the three stock portfolio means that it is whipping the ASX 200, which has a negative return since our modelling started. It’s also ahead of the S&P500, and breathing down the neck of the Nasdaq. A simple portfolio that is delivering world class returns at the moment.

The core and satellite portfolio (+5.54%) is the lowest returning portfolio, dragged down by two disappointing satellites - $Droneshield Ltd (DRO.AU)$ and $Polynovo Ltd (PNV.AU)$. However the portfolio illustrates the power of diversification, and the return is positive because of the strength of a core holding ( $Global X Physical Gold Structured (GOLD.AU)$ +21%) and a better performing satellite ( $Arafura Rare Earths Ltd (ARU.AU)$ +24%).

A stronger example of the benefits of diversification is the US super ten portfolio (+6.78%). Here are the individual components:

US super 10 - stock returns

Even within industries, diversification is important. Whether it’s mega cap tech stocks – $Alphabet-C (GOOG.US)$ vs $Meta Platforms (META.US)$ , or consumer exposures – $Walmart (WMT.US)$ vs $McDonald's (MCD.US)$, going all in on one stock could have been hugely rewarding or incredibly costly. It’s easy to see why some investors say that diversification allows them to sleep better at night.

If you're interested in drilling into the details, here are the portfolios:

Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only. Read more