1. Core Principles of My Strategy
My goal is clear: build a steadily growing dividend cash flow based on hard assets, high-yield distributions, and sustainable payouts. No story stocks, no hype chasing — only businesses with real fundamentals and proven cash flows.
What I Focus On
- Hard Assets: Energy, shipping, commodities, pipelines, infrastructure
- High Yield — but only when backed by sustainable cash flows
- Cash flow over capital gains — distributions build wealth reliably
- Counter-cyclical buying — purchasing during weakness, not during hype
- Macro awareness — timing entries with cycle analysis
What I Avoid
- Story stocks without cash flows
- Chasing hype and trends
- Over-leveraged speculation without a clear risk/reward profile
- Buying at cycle highs just because “everyone else is”
- Concentrating in a single sector or geography
Key Portfolio Metrics
2. Portfolio Allocation — 80% Dividends / 20% Bonds
My core portfolio is split into 80% dividend-paying hard asset stocks and 20% ultrashort bonds for tactical flexibility.
- 80%: Hard assets, REITs, BDCs, infrastructure, high-yield dividend payers
- 20%: Ultrashort bonds and cash-equivalent positions for opportunistic deployment
Goals of the 80/20 Structure
- Stable cash flow as the foundation
- Liquidity for pullbacks and buying opportunities
- Deliberate risk management across sectors and cycles
- Avoid being fully invested at cycle peaks
3. Sector Allocation Breakdown
The portfolio is diversified across our core hard asset sectors. Every position serves a specific role — whether it is providing stable contractual cash flows, benefiting from tight supply dynamics, or offering counter-cyclical upside.
Pipelines & Midstream (30–35%)
MLPs and midstream infrastructure providing stable, contract-backed distributions. These are the backbone of the portfolio — fee-based revenue models with predictable cash flows regardless of commodity price swings.
Examples: Enterprise Products, Energy Transfer, MPLX, Western Midstream
Shipping (20–25%)
Tanker and LNG carriers benefiting from structurally tight vessel supply, aging fleets, and long-term charter contracts. Shipping offers some of the highest dividend yields available when bought at the right point in the cycle.
Examples: Frontline, Hafnia, TORM, TEN, Flex LNG, Cool Company
Mining & Royalties (15–20%)
Gold, copper, coal, and uranium royalties with minimal capex exposure. Royalty companies earn revenue without operating risk — they collect a percentage of production regardless of cost overruns or operational issues.
Examples: Franco-Nevada, Wheaton Precious Metals, BHP, Thungela, Kazatomprom
Energy & Upstream (10–15%)
Oil and gas producers with strong free cash flow and disciplined capital allocation. These companies generate outsized returns during commodity upcycles while maintaining sustainable payout ratios.
Examples: Equinor, Petrobras, Devon Energy, Aker BP
High-Yield & BDCs (5–10%)
Business development companies and high-yield vehicles for portfolio income boost. BDCs lend to middle-market companies and pass through most of their income as dividends, often yielding 9–12%.
Examples: Ares Capital, Main Street Capital, Hercules Capital
Ultrashort Bonds (15–20%)
Cash-like instruments for tactical deployment. This allocation serves as dry powder — ready to be deployed when markets pull back and high-yield opportunities emerge at attractive valuations.
Purpose: Liquidity reserve, risk management, opportunistic rebalancing
4. Cycles & Timing — Macro, Sector Cycles & Technical Analysis
I combine macro data, sector cycle analysis, order book depth, and technical analysis to find better entry points. This is not about predicting the market — it is about buying quality businesses at better prices.
- Buy during weakness, not during hype — counter-cyclical entries provide higher starting yields
- Build positions in stages rather than going all-in — averaging into weakness reduces timing risk
- Fibonacci retracements & Elliott Wave patterns for fine-tuning entry and exit points
- Commodity supercycle awareness — understanding where we are in the long-term resource cycle
- Shipping cycle monitoring — tracking orderbook-to-fleet ratios, charter rates, and scrapping data
5. My Portfolio Live — Parqet Overview
Below you can see my portfolios transparently embedded via Parqet — including current weightings, performance, and dividend data. Full transparency, no hidden positions.
Scalable Capital Portfolio
View directly on Parqet: Scalable Portfolio →
Trade Republic Portfolio
View directly on Parqet: Trade Republic Portfolio →
Get Parqet with 15% discount: Click here →
6. Monthly Portfolio Updates
Every month, I publish a detailed portfolio review on YouTube covering all changes, new positions, dividend income received, and market outlook. Full transparency — nothing is hidden.
Recent Portfolio Updates
Find more months directly in the playlist above.
Each monthly update covers:
- New positions added or sold — with full reasoning
- Dividend income received — gross and net figures
- Sector allocation changes and rebalancing decisions
- Market outlook, commodity cycles, and upcoming opportunities
- Year-to-date performance vs. benchmarks
7. Tools & Brokers I Use
The best strategy is only as good as the infrastructure behind it. These are the tools and brokers I personally use to manage, track, and analyze my portfolio:
- Scalable Capital — my main broker for stocks, ETFs, and dividend strategy. Scalable Capital →
- Trade Republic — secondary portfolio for quick tactical trades. Trade Republic →
- Parqet — portfolio and dividend tracking with cash flow overview. Parqet with 15% discount →
- InvestingPro — fundamental data, fair value models, and stock screening. InvestingPro with 15% discount →
- YouTube: MB Capital Strategies — analyses, portfolio updates, and hard asset strategies. Visit the channel →
Transparency: Some links are affiliate links. If you sign up through them, you support this project at no extra cost to you.
Frequently Asked Questions About My Strategy
Why do I focus so heavily on hard assets?
Because they deliver real cash flow, provide inflation protection, and tend to perform more steadily over the long term than many growth stocks. Hard assets — energy, shipping, mining, pipelines — are backed by physical infrastructure and real-world demand that does not disappear during recessions.
Why do I hold so many individual positions?
Broad diversification across countries, cycles, and sectors ensures stable dividend payment dates throughout the year and significantly reduces overall portfolio risk. If one sector faces a downturn, others continue delivering cash flow.
Why do I rarely use recurring savings plans?
I deliberately buy counter-cyclically at low points to lock in higher dividend yields, rather than blindly purchasing every month. Timing matters — buying a 10% yielder at a cycle low is worth more than dollar-cost averaging into a 5% yielder at all-time highs.
How do I select new positions?
Fundamental data, cash flow quality, valuation, and the current cycle phase determine whether a stock fits into the portfolio. I look at payout ratios, debt-to-EBITDA, free cash flow yield, and where we are in the commodity or shipping cycle before making any purchase.
Why is cash flow more important than capital gains?
Cash flow arrives more reliably than capital gains. Distributions are predictable, stable, and build real financial independence over time. You can not pay bills with unrealized gains — but you can with monthly dividend checks.
How important is diversification?
It protects against shocks in individual commodities, countries, or shipping segments and stabilizes overall portfolio cash flow. No single position exceeds 5% of the portfolio, and no single sector exceeds 35%.
What is my long-term goal?
To build a growing dividend snowball that secures my financial independence over the long term. The target is a steadily rising net monthly dividend income that eventually covers all living expenses — making work optional, not mandatory.
8. Next Steps
If you want to dive deeper into the sector logic behind my portfolio, make sure to read the Hard Asset Guide.
For a detailed explanation of the 80/20 split and why I structure my portfolio this way, visit the 80/20 Strategy page.
All current analyses, sector deep-dives, and special reports can be found in the Blog.
Start Exploring
Deep-dive into hard asset investing with our sector guides and analysis tools.
Disclaimer: All content serves exclusively informational and educational purposes and does not constitute investment advice. Investments in securities carry risks. All information is provided without warranty.