Welcome back Mooers!
In today discussion, we will talk about the events for the past 1 month of 2022. It is also the 15th article and the last article about stock options for my MooMoo goal for Q1 2022 .
Without further ado, let’s begin our Lunar New Year 2022 story!
January 2022 was a very exciting month to most Mooers. We witness several stocks breaking records such as Tesla and Apple, follow by $Nasdaq Composite Index(.IXIC.US)$ dropping ...

Still remember the GameStop saga? Some investors successfully rode the trend and reaped considerable profits out of it, while others experienced significant losses. Are the details of the incident still vivid in your memory?
Do you like meme stocks? Why?
$AMC Entertainment(AMC.US)$ $GameStop(GME.US)$ $BlackBerry(BB.US)$

First and foremost, I would like to thank to the 50+ supporters and participants who have voted for an example , and because of your loves and likes, we shall go through an example in today's discussion.
So here we go!
Step 1. Identify the number of stocks that we are willingly to trade.
We will select 8 as the number of stocks that we are willing to trade.
Step 2. Identify the list of favourite stocks that we can afford to trade with.
We will select $Apple(AAPL.US)$ , $Bank of America(BAC.US)$ , $Coca-Cola(KO.US)$ and  $Moody's(MCO.US)$ as our favorite stocks. The price is 179.45, 44.52, 56.28 and 397.75 as of 10 Dec 2021 in USD.
This is 50% of the total number of stocks we have selected in Step 1.
Step 3. Identify the budget that we going to spend on our portfolio.
We will be investing USD $12,000 on our SI portfolio.
Step 4. Look thru the SI we are familiar with in the SI feature.
We have found the following SI that we are familiar with.
Berkshire Hathaway Inc.
Soros Capital Management LLC.
Dimensional Fund Advisors L.P.
Temasek Holdings (Private) Limited.
Also, in the Berkshire Hathaway Inc. top 8 holdings list, it has all the favourite stocks that we want.
$Apple(AAPL.US)$ *, 179.45, 46.77%
$Bank of America(BAC.US)$ *, 44.52, 13.21%
$American Express(AXP.US)$ , 167.03, 7.44%
$Coca-Cola(KO.US)$ *, 56.28, 6.61%
$The Kraft Heinz(KHC.US)$ , 34.15, 3.27%
$Moody's(MCO.US)$ *, 397.75, 2.88%
$BYD COMPANY(01211.HK)$ , 289.8, 2.45%
$Verizon(VZ.US)$ , 50.19, 2.34%
Total: 84.97% of SI portfolio
Cost: 1219.17
* favourite stocks as in step 2, and the first number is the stock price as of 10 Dec 2021 while the second number represent the stock weightage in the portfolio.
Thus, we shall select Berkshire Hathaway Inc portfolio to be cloned.
Step 5. Check if SI have at least 8 consecutive years of quarterly 13F filings.
Berkshire Hathaway Inc. (Yes )
Soros Capital Management LLC. (No)
Dimensional Fund Advisors L.P. (Yes )
Temasek Holdings (Private) Limited. (Yes )
Step 6. Look out for any restatements (for both buys and sells) issued by SI.
A quick check shows that there is no restatement for the past 5 years from Berkshire Hathaway Inc.
Step 7. Using our magic formula.
Using the magic formula:
[ (Stock weightage in SI portfolio / Total weightage of trimmed SI portfolio) x our budget (Step 3) ] / current Stock price. Each result will be round down to the nearest integer.
We will buy the following number of stocks
$Apple(AAPL.US)$ , 36 stocks
$Bank of America(BAC.US)$ , 41 stocks
$American Express(AXP.US)$ , 6 stocks
$Coca-Cola(KO.US)$ , 16 stocks
$The Kraft Heinz(KHC.US)$ , 13 stocks
$Moody's(MCO.US)$ , 1 stocks
$BYD COMPANY(01211.HK)$ , 1 stocks
$Verizon(VZ.US)$ , 6 stocks
Step 8. Begin our cloning via trading.
Now, we shall place our trades in the $Futu Holdings Ltd(FUTU.US)$ MooMoo apps to clone the SI portfolio and turn it to become our SI portfolio.
$Apple(AAPL.US)$ , 36 stocks @ USD 179.45
$Bank of America(BAC.US)$ , 41 stocks @ USD 44.52
$American Express(AXP.US)$ , 6 stocks @ USD 167.03
$Coca-Cola(KO.US)$ , 16 stocks @ USD 56.28
$The Kraft Heinz(KHC.US)$ , 13 stocks @ USD 34.15
$Moody's(MCO.US)$ , 1 stocks @ USD 397.75
$BYD COMPANY(01211.HK)$ , 1 stocks @ USD 289.8
$Verizon(VZ.US)$ , 6 stocks @ USD 50.19
That's all for the example. Please give a like to show your support, and do vote if you will be cloning any SI portfolio in the next 3 months.

Welcome back Mooers
In this post, we are going to use the SI feature to create our SI Portfolio, by following our 'Clone an SI portfolio in 8 simple steps'.
Here we go!
Step 1. Identify the number of stocks that we are willing to trade.
We will need to know what is the number of stocks that we are comfortable trading with. This number should be in a range between 5 to 35 and should be flexible for later fine-tune if required.
Step 2. Identify the list of favorite stocks that we can afford to trade with.
Besides knowing the number of stocks that we are comfortable trading with, we can also list down our favorite stocks that we can afford to trade should we buy them all. The number of favorite stocks should be in a range between 25% to 75% of the total number of stocks we had identified in step 1.
Step 3. Identify the budget that we are going to spend on our portfolio.
Next, we will need to know how much money we are comfortable to invest in our SI portfolio. This amount should be flexible enough to be tweaked at a later time if required.
Step 4. Look thru the SI we are familiar with listed in the SI feature.
Now, we will scan thru the SI list to select those SI that we are familiar with, and try to match the SI top X number of stocks with our preferences set in the first 3 steps.
Step 5. Check if SI have at least 8 consecutive years of quarterly 13F filings.
As a precaution, we would want our SI to have at least 8 consecutive years of quarterly 13F filings. This helps to let us know that the SI is committed and shown a certain degree of portfolio resilient during stock market volatility.
Step 6. Look out for any restatements (for both buys and sells) issued by SI.
Restatements may contain strategic & valuable information that is associated with significant abnormal returns. This was described in a 2021 interuniversity research report done by Sean Cao, Zhi Da, Xin Daniel Jiang and Baozhong Yang.
Step 7. Using our magic formula.
The magic formula to find out the maximum number of each stock that we can buy for our SI portfolio is:
[ (Stock weightage in SI portfolio / Total weightage of trimmed SI portfolio) x our budget (Step 3) ] / current Stock price.
Each result will be round down to the nearest integer.
Step 8. Begin our cloning via trading.
Finally, we can place our trading to make a similar clone of the SI portfolio to form our SI Portfolio.
Before we end this post, please vote if you wish to have an example to illustrate the above steps.
Remember to show your support and thank you very much.
Top 10 Actives (10 Dec 2021)
$Ford Motor(F.US)$
$Apple(AAPL.US)$
$Lucid Group(LCID.US)$
$AMC Entertainment(AMC.US)$
$Bank Bradesco SA(prefer share ADS)(BBD.US)$
$Nu Holdings(NU.US)$
$NVIDIA(NVDA.US)$
$Oracle(ORCL.US)$
$New Oriental(EDU.US)$
$AT&T(T.US)$