- Investment Policy Statement for Individual Investors: Silva’s Family

This Investment Portfolio Statement presents a comprehensive portfolio proposal for a Portuguese couple aiming to invest for their son's future over a 15-year time horizon. The primary objective is to achieve a return of at least $250,000 from an initial investment of $70,000 while aligning with the couple's moderate risk tolerance. The investment strategy focuses on allocating the majority of the portfolio to stocks, excluding short selling strategies, to capitalize on growth and value investing opportunities. The portfolio aims to achieve potential capital appreciation and take advantage of undervalued assets. The portfolio consists of a diversified mix of 19 stocks carefully selected from Europe and the United States. Each stock was chosen after thorough analyses of financial ratios and considering various industries and market sectors. The portfolio composition was computed using the Mean Variance Theory, optimizing for the desired return while minimizing risk. The resulting portfolio not only meets the clients' return expectations but also exhibits a lower risk profile compared to the tangent portfolio. To enhance stability, a risk-free asset was included in the portfolio allocation. By adhering to this investment approach, the proposed portfolio provides the potential for achieving the desired return while managing risk within the clients' moderate risk profile. The combination of growth investing, value investing, careful stock selection, and risk management strategies aims to optimize the portfolio's performance over the 15-year investment horizon.