A Strategy for Long-Term Growth

In the world of investing, consistency is often the difference between a modest savings account and a generational nest egg. For me, the compounders strategy fully represents this philosophy: identifying high-quality businesses that can grow their earnings year after year and systematically adding to those positions regardless of market noise to grow my portfolio to impressive heights.

This is my curated portfolio of 13 stocks currently being funded with a disciplined $500-per-week investment. With a current valuation north of $120,000 and a time-weighted return of approximately 21.7%, outperforming the S&P 500’s 17.5% this year, this strategy focuses on a blend of secular growth in semiconductors, a resurgence in physical infrastructure, and the rock-solid stability of defensive stalwarts.

Below is how the portfolio looks in the last year growing quite a bit through a combination of contributions and stock returns.

If you want more details into the portfolio performance, make sure to watch this video which dives into more details on how the portfolio is doing.

The Strategy: Why $500 a Week?

The core of this approach is Time in the Market, hey just like he the name of this blog! By deploying $500 every single week, the portfolio benefits from dollar-cost averaging and constant purchasing of high quality names. When prices are high, fewer shares are purchased but the portfolio benefits from the growth and when markets dip, the $500 stretches further, lowering the average cost basis over time and continuing to add shares of companies I believe will be worth more years from now.

While the majority of many investors’ funds are rightfully tucked away in simple index funds, this Compounders portfolio serves as an interesting deviation and a fun strategy for me to follow. It is designed to capture outsized gains from specific themes, like the AI revolution and the massive U.S. infrastructure build-out, without sacrificing the stability that comes from essential services like waste management and energy.

Here is what the portfolio currently looks like.

The Top Five: The Engine of Growth

The top five holdings represent nearly 50% of the total portfolio. These are the heavy hitters that drive the majority of the returns.

1. Alphabet (GOOGL) – Target: 14%

Alphabet remains the cornerstone of the portfolio. Despite the rise of generative AI competitors, Google Search and YouTube remain the most valuable real estate on the internet, their Google Cloud business is now profitable and growing quickly and Gemini Pro is one of the best AI models out there today. Not to mention things like their TPU business and Waymo.

What they do: Alphabet is a global conglomerate specializing in online advertising, cloud computing, and software. Its core products—Search, Android, and YouTube—command billions of users.

Why the buy: At a historical PE ratio of 20-25x, Google was an absolute steal; even at its current valuation north of 30x, it offers a favorable risk-reward profile. The downside is protected by a massive cash pile and an advertising monopoly, while the upside is fueled by Google Cloud and its proprietary TPU (Tensor Processing Unit) development plus a growing Waymo business. As a business I use every single day and one that gets my money through various subscriptions, it represents a buy what you know success story.

2. EMCOR Group (EME) – Target: 12%

EMCOR is a specialized play on the re-industrialization of America.

What they do: EME is a leader in mechanical and electrical construction and facilities services. They are the ones building and maintaining the complex systems inside hospitals, data centers, and manufacturing plants.

Why the buy: Even if the software side of AI cools off, the hardware, the data centers, will find other uses in a tech focused economy. EMCOR is a primary beneficiary of the transition to smart buildings and the infrastructure required to support high-performance computing but they also do work in a variety of other areas that aren’t related to tech. It is a resilient business that thrives on the physical complexity of modern infrastructure. Management has also done a great job managing their free cash flow with a combination of share buybacks and accretive acquisitions.

3. Broadcom (AVGO) – Target: 11%

Broadcom is a solid and diversified tech business with high margins and growing backlogs.

What they do: Broadcom designs, develops, and supplies a broad range of semiconductor and infrastructure software solutions. Their chips are in everything from smartphones to the networking switches that run the internet.

Why the buy: Broadcom is a cash-flow machine. By acquiring high-margin software businesses (like VMware) and maintaining a dominant position in networking silicon, they have created a toll booth model for data traffic. I see them as essential; regardless of which AI model wins, Broadcom’s hardware will likely be moving the data. Their free cash flow also allows them to be a mover in the acquisition space and I wouldn’t be surprised if they add another company or two in the next few years.

4. Taiwan Semiconductor Manufacturing (TSM) – Target: 9%

If Broadcom is the architect, TSM is the builder.

What they do: TSM is the world’s largest dedicated integrated circuit foundry. They manufacture the world’s most advanced chips for Apple, Nvidia, and AMD.

Why the buy: TSM possesses a massive moat. They are years ahead of the competition in manufacturing at the 3nm and 2nm scale. As long as the world needs more powerful computing, they must go through TSM. Their dominance makes them a foundational holding for any long-term tech strategy. The only downside is the location in Taiwan and the geopolitical risk that comes with that. Building out foundries in the U.S. helps on that front but that’s the main reason this isn’t a higher allocation in this portfolio.

5. CRH plc (CRH) – Target: 9%

Rounding out the top five is another infrastructure giant.

What they do: CRH is a leading provider of building materials solutions. They produce everything from cement and aggregates to asphalt and precast concrete.

Why the buy: With the U.S. government pouring billions into the Infrastructure Investment and Jobs Act, CRH is perfectly positioned. They provide the picks and shovels for the roads, bridges, and tunnels that define the physical economy. It provides a perfect balance to the tech-heavy portions of the portfolio.

Data and Finance: The Infrastructure of Information

6. S&P Global (SPGI) – Target: 7%

What they do: SPGI provides essential intelligence, including credit ratings, benchmarks (like the S&P 500), and data analytics to the global capital markets.

Why the buy: This is a classic moat business. For a company to issue debt, they often need a rating from S&P. It is a high-margin, recurring revenue business that is deeply embedded in the global financial system. While it hasn’t outperformed significantly in the last year, its long-term stability is unquestioned.

7. Amazon (AMZN) – Target: 7%

What they do: Amazon is the global leader in e-commerce and cloud infrastructure (AWS) with investments in various other areas that may eventually generate revenue like robotics and their Amazon Leo business.

Why the buy: While the retail side is what consumers see, AWS is the profit engine. Amazon’s integration of AI into AWS and its logistics network makes it a formidable compounder. It serves as a defensive growth play as people continue to shop on Amazon and companies continue to run on AWS regardless of the economic climate.

The Growth and Cyclical Additions

The portfolio isn’t static. Recent changes have introduced names like Micron and Reddit to capture emerging cycles.

8. Micron Technology (MU) – Target: 7%

What they do: Micron is one of the big three global manufacturers of memory (DRAM and NAND) chips.

Why the buy: This is a tactical cyclical play. The demand for High Bandwidth Memory (HBM) to support AI GPUs is outstripping supply. Micron is trading at roughly 12x forward earnings, which is incredibly cheap if we are only mid-cycle. With new fabs coming online in the U.S., Micron is a play on the scarcity of RAM and the essential nature of memory in the AI era.

9. Reddit (RDDT) – Target: 4%

What they do: Known as the front page of the internet, Reddit is a massive collection of community-led forums and data.

Why the buy: Reddit’s true value lies in its data. AI companies like Google and OpenAI are paying millions to license Reddit’s human-generated conversations to train their models. With a growing advertising business and a relatively small $45B market cap, I can see Reddit reaching $100B and more as it matures into a major social media incumbent.

The Defensive Backbone: Dividends and Stability

10. Waste Management (WM) – Target: 6%

What they do: WM is the largest waste disposal and recycling company in North America.

Why the buy: Humans create trash regardless of the economy. WM owns the landfills, which are finite, highly regulated assets that act as a natural barrier to entry. While its valuation is higher than its historical average (around 30x PE vs. 22x), its recession-proof nature makes it a vital stabilizer.

11. Main Street Capital (MAIN) – Target: 5%

What they do: MAIN is a Business Development Company (BDC) that provides long-term debt and equity capital to lower middle-market companies.

Why the buy: MAIN is famous for its monthly dividend and consistent special dividends. It provides a steady stream of cash flow that can be reinvested into the higher-growth names in the portfolio.

12. AbbVie (ABBV) – Target: 5%

What they do: A global pharmaceutical leader, AbbVie is known for blockbuster drugs like Humira and its growing oncology and immunology pipelines.

Why the buy: Healthcare is a non-discretionary expense. AbbVie offers a solid dividend yield and a history of navigating patent cliffs successfully through smart acquisitions and R&D. It’s one of the few names in pharmaceuticals that has been a consistent grower and that doesn’t seem to be ending anytime soon.

The Energy Hedge

13. Exxon Mobil (XOM) – Target: 5%

What they do: Exxon is the largest U.S. supermajor oil and gas company.

Why the buy: Despite the green energy transition, oil remains the lifeblood of the global economy. Exxon is trading at a favorable 7-8% free cash flow yield. Even with depressed oil prices, they can sustain dividends and buy back 3-4% of their stock annually. They are more efficient than competitors and are continuing to invest in capacity and growth while others are cutting back due to low oil prices, meaning they benefit more when oil inevitably returns to the $80-$90 range.

The Discipline of Selling: Why Costco and Roper Had to Go

Success in investing isn’t just about what you buy; it’s about what you have the discipline to sell. This portfolio recently underwent a trimming, removing five stocks to concentrate on the Lucky 13.

• Costco (COST): Sold because of valuation. Trading at a 50x PE at time of sale, well above its 30x historical norm, it became too expensive for its growth rate.
• Roper Technologies (ROP): Removed due to slowing growth and questionable acquisition choices. I preferred to move that capital into Google, which offered better growth at a more reasonable price.
• Waste Connections (WCN): Removed to avoid over-concentration in the waste sector (choosing to focus solely on WM).

Conclusion: Looking Ahead

The Lucky 13 portfolio is built on a simple premise: buy great companies, don’t overpay for them, and add to them every week. By focusing on the intersection of technology and infrastructure, this strategy is positioned to ride the waves of innovation while remaining anchored by essential services.

Whether the market is booming or entering a recession, the $500-a-week commitment ensures that I remain a buyer of assets, building a portfolio that is designed to last for decades. That doesn’t mean that this portfolio is static and never changes. I may adjust targets based on valuations getting stretched and sell certain positions for others when better opportuinties arise. However, right now I feel comfortable with this portfolio of 13 companies to buy every week in 2026.

Disclaimer: This article is based on a specific personal investment strategy and does not constitute financial advice. Always perform your own due diligence before investing. I am long all stocks discussed in this portfolio and may be long stocks discussed in this article in the near future. I am not a financial advisor and do stock analysis as a hobby. Opinions are my own. This is not financial advice. Consult with a financial advisor before making any investments as stock investing comes with risk of loss.