My Scoreboard Scorecard helps keep my portfolio on track and aligned with my goals.

This weekend I adjusted the scoring system for one of my KPIs. I revised how I calculate my holding weighting ranking. Holding weighting is one of the five KPIs that make up my Scorecard.

Previously I looked solely at sector weighting (1 for underweight, 0 for overweight), but have made an adjustment to now factor in individual holding weighting as well. My rating now requires both the sector to be underweight AND the holding to be underweight to score a 1. Any other combination of underweight is 0.5. If holding AND sector are at or above target, the weighting ranking will be 0.

It is a small change and is intended to make my portfolio more defensive. This was in response to my positions in $PFE and $PPL continuing to grow - both sectors are underweight in my portfolio, but the individual positions have exceeded my targets.

In initial review, my scores have condensed with a number of weighting scores shrinking from 1 to 0.5. It will be more difficult for a holding to achieve a higher score - and make high rated holdings ones to write home about!

A little insight into my calculation change and the inner workings of my Scorecard:

I will continue to post my weekly buys and/or watchlists to share how the new system is working!