A High-Returns E-Commerce Portfolio: Make A Fortune By Only Lifting A Finger

Loading...
Loading...
  • Motif Investing constantly looks for “trends, ideas and world events that could create an investment opportunity.”
  • They then picks 10 to 30 related stocks to build portfolios around, weighing them based on their exposure to the coinciding idea, event or trend.
  • Among the site’s portfolios with highest returns, investors can find one composed by “companies that provide products and services to consumers online.”
  • E-commerce has become amazingly popular, and the reason is quite simple. Buying virtually anything from the comfort of your couch, or even your bed, is a hard-to-beat proposal.

    But, there’s more than just convenience involved in online shopping. Wide selections and frequently lower prices (or the ability to compare, at least) add further value to the experience.

    Couch Commerce

    According to Motif, “Ecommerce is expected to grow 13 percent to $262 billion in 2013, representing 8 percent of the total retail pie. What’s more, projections call for online retail to grow at a compound annual growth rate of 9 percent through 2017. In the second quarter of 2013, e-commerce sales totaled $64.8 billion, up 18.5 percent, which represents the largest growth in any quarter since 2007.”

    Related Link: Investing Is No Game...Or Is It? This Gaming Portfolio Returned 57% In One Year

    “The proliferation of tricked-out tablets and smarter smartphones means we can get off the couch, without stopping the shopping. And that could give the growth of online commerce even more legs,” they added.

    Performance And Allocation

    The Couch Commerce motif has managed to comfortably outperform the S&P 500, both over the past year and past month. The portfolio returned roughly 37 percent over the past year, and more than 14 percent over the past month, versus the S&P’s 2.89 percent and 5.56 percent surges, respectively.

    In terms of allocation, 42.9 percent of the portfolio's assets are placed in online retailers (or e-tailers), 33.9 percent in online travel companies, 16.4 percent in auctioneers and marketplaces and 6.8 percent in discount online retailers.

    As for individual stocks, the top companies in this portfolio in terms of allocation are:

    • Amazon.com, Inc. AMZN: 22.6 percent
    • Priceline Group Inc PCLN: 21.4 percent
    • eBay Inc EBAY: 12.3 percent
    • Alibaba Group Holding Ltd BABA: 10.2 percent
    • Expedia Inc EXPE: 6.5 percent
    • JD.Com Inc(ADR) JD: 5.0 percent
    • Ctrip.com International, Ltd. (ADR) CTRP: 3.4 percent
    • Vipshop Holdings Ltd – ADR VIPS: 2.5 percent
    • Liberty Interactive Group QVCA: 1.8 percent
    • Mercadolibre Inc MELI: 1.7 percent
    • Copart, Inc. CPRT: 1.6 percent

    Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.

    Image Credit: Public Domain
    Loading...
    Loading...
    date
    ticker
    name
    Price Target
    Upside/Downside
    Recommendation
    Firm
    Posted In: Analyst ColorLong IdeasAnalyst RatingsTechTrading Idease-commerceMotif Investing
    Benzinga simplifies the market for smarter investing

    Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

    Join Now: Free!

    Loading...