SoloFIRE Portfolio Update - Dec and FY 2025 - $932k

Table of Contents

• Annual Performance

  • Macro Outlook

  • Stocks To Buy in 2026

• 💸2025 Dec Portfolio Update

  • Holdings Breakdown

  • Trades in TFSA Account

    • TFSA portfolio long-term performance

  • Trades in RRSP Account

  • Trades in Taxable Accounts

• Smith Maneuver Portfolio Updates

• Quick Links

Annual Performance

My portfolio has underperformed both the Canadian S&P TSX and the S&P 500 indices in 2025, largely due to lack of exposure to booming sectors such as materials, Canadian banks, and AI "winner" stocks. A significant portion of my portfolio is concentrated in software businesses, most of which have lagged the broader market, with some have seen significant decline in share prices after being labeled as ‘AI losers’ by the market.

As a long term investor with an edge in the software industry, I welcome this market condition as it allows me to continue accumulating shares in my core holdings at discounted prices. One example is Constellation Software (CSU), which continues to grow its underlying business at an exceptional rate despite a significant decline in its stock price. Similar dynamics are playing out across several of my other holdings as well. These businesses (Meta, Amazon, Salesforce, etc.) continue to deliver steady earnings-per-share growth every single quarter, yet their strong performance remains underappreciated by the market.

Going into 2026, I have no plan to change my proven investing strategies, which includes:

• Avoid all industries and stocks that are hyped up and overvalued

• Stay in my circle of competence

• Continue investing in great businesses with proven track record and reasonable valuations

• Make investment decisions strictly based on business performance and intrinsic value, not stock prices.