Your complete investment overview at a glance
| Category | Details |
|---|---|
| Investment Style | Warren Buffett Value Investing - Buy quality, hold forever |
| Primary Focus | Defense Stocks (70-80%) with selective Tech exposure (20-30%) |
| Risk Level | Moderate - Quality stocks with proven track records |
| Time Horizon | 5-10+ years minimum (Long-term wealth building) |
| Platform | Stake (supports fractional shares, $0 commissions) |
| Currency | USD (Converting from AUD at ~0.66 rate) |
| Key Advantage | Compounding dividends + price appreciation over decades |
| Rank | Stock | Ticker | Price | Allocation | Why It's in Your Portfolio |
|---|---|---|---|---|---|
| π₯ | Lockheed Martin | LMT | $500.62 | 40-50% | Largest defense contractor, 2.9% dividend, stable government contracts, perfect Buffett stock |
| π₯ | L3Harris Tech | LHX | ~$260 | 20-30% | Up 36% in 2025, communications/space leader, excellent earnings growth |
| π₯ | RTX Corp | RTX | $166.55 | 15-20% | Defense + commercial aerospace, good value, 1.8% dividend, diversification |
Step-by-step guide to building your portfolio over 12 months
What is an "allocation"? It means what percentage of your money goes where. Like if you have $100 and put $50 in LMT, that's a 50% allocation.
What is "fractional investing"? You can buy part of a share! If a stock costs $500 and you have $250, you can buy 0.5 shares (half a share).
What is "dollar-cost averaging"? Investing the same amount regularly. This means you buy more shares when prices are low, and fewer when high - automatically!
What is "rebalancing"? If one stock grows to 60% of your portfolio, you sell some and buy the others to get back to your target percentages.
Risk Level: LOW-MODERATE
Expected Return: 10-15% annually over 5+ years
Stress Level: Very Low - check once a week or less
| Phase | Timeline | Total Capital | Action |
|---|---|---|---|
| Phase 1 | Months 1-3 | $130 + ($66 Γ 6) = $526 | Build foundation with 3 core stocks |
|
Allocation: β’ 50% Lockheed Martin (LMT) = $263 β’ 30% L3Harris (LHX) = $158 β’ 20% RTX Corp (RTX) = $105 Why these percentages? LMT is the safest and most stable, so it gets the most. LHX is growing fast, so 30%. RTX gives diversification with commercial aerospace. |
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| Phase 2 | Months 4-6 | + ($66 Γ 6) = $396 more | Strengthen your core positions |
|
Keep Same Ratios: β’ 50% to LMT = $198 β’ 30% to LHX = $119 β’ 20% to RTX = $79 Portfolio Value at Month 6: $922 (not counting any gains!) What to do: Just keep adding money every fortnight. Don't change anything. Ignore price movements. |
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| Phase 3 | Months 7-12 | + ($66 Γ 13) = $858 more | Add diversification with 2 more stocks |
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Adjust Allocation (Now 5 Stocks): β’ 40% Lockheed Martin (LMT) = $343 β’ 25% L3Harris (LHX) = $215 β’ 20% RTX Corp (RTX) = $172 β’ 10% TransDigm (TDG) = $86 β’ 5% Northrop Grumman (NOC) = $43 Portfolio Value at Month 12: $1,780 invested Why add TDG and NOC now? You have enough capital to diversify further without positions being too small. |
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Risk Level: MODERATE-HIGH (for the risky portion)
Expected Return: Core portfolio: 10-15%, Risky play: -50% to +100%
Stress Level: Medium-High - you'll want to check daily (don't!)
Suitable For: Investors who want to "scratch the gambling itch" with a small amount
| Component | Initial Amount | Ongoing | Strategy |
|---|---|---|---|
| Core Portfolio (90-95%) |
$100 | $66 every fortnight | Same as Option A - follow Buffett principles |
| Risky Play (5-10%) |
$30 into AVAV | ZERO - Never add more! | Set stop-loss at -20%, take profit at +40% |
Why AVAV is risky: Small company, very volatile, could drop 30% on one bad earnings report. But if drone demand explodes, could double.
| Step | Action | Time Required |
|---|---|---|
| 1 | Log into Stake on payday | 30 seconds |
| 2 | Convert $100 AUD to USD (~$66 USD) | 1 minute |
| 3 | Split according to your allocation percentages | 2 minutes |
| 4 | Buy fractional shares of each stock | 1 minute |
| 5 | Close app and forget about it until next payday | 5 seconds |
Detailed breakdown of every stock on your radar
| Stock | Ticker | Price | Buffett Score | Dividend | Why Buy | Risks | Verdict |
|---|---|---|---|---|---|---|---|
| Lockheed Martin | LMT | $500.62 | 9/10 | 2.9% |
β’ Largest defense contractor by revenue β’ Government contracts = predictable income β’ F-35 program = decades of revenue β’ Low P/E ratio (17.1) = good value β’ Recession-proof business model |
β’ Budget cuts (unlikely but possible) β’ Stock moves slowly β’ Not exciting/sexy |
STRONG BUY Your #1 position |
| L3Harris Technologies | LHX | ~$260 | 8/10 | ~2.0% |
β’ Up 36% in 2025 (momentum!) β’ Communications & space systems β’ Beat earnings expectations β’ Growing faster than LMT β’ Electronic warfare leader |
β’ More expensive valuation β’ Smaller than LMT β’ Recent merger integration |
BUY Your #2 position |
| RTX Corp | RTX | $166.55 | 7.5/10 | 1.8% |
β’ Defense + commercial aerospace β’ Up 40% in past year β’ Pratt & Whitney engines β’ Raytheon missiles/defense β’ Diversification benefits |
β’ Commercial aerospace volatility β’ Higher P/E (25x) β’ Engine quality issues (resolved) |
BUY Your #3 position |
| Stock | Ticker | Price | Buffett Score | When to Buy | Why Buy |
|---|---|---|---|---|---|
| TransDigm Group | TDG | ~$1,400 | 8.5/10 | Month 7+ ($700+ invested) |
β’ Monopoly on aerospace parts β’ Extremely high profit margins (40%+) β’ Raises prices regularly β’ 9.3% revenue growth β’ True "moat" business |
| Northrop Grumman | NOC | $605.33 | 7/10 | Month 7+ ($700+ invested) |
β’ B-21 bomber program β’ Space systems leader β’ Autonomous systems/drones β’ Premium valuation = quality |
| Stock | Ticker | Price | Risk Level | Why Risky | Potential Upside |
|---|---|---|---|---|---|
| AeroVironment | AVAV | $361.99 | HIGH |
β’ Small company (volatile) β’ Already up significantly β’ Single bad quarter = -20-30% β’ Defense budget dependent β’ High valuation |
β’ Record revenue growth (40%) β’ $1.2B in bookings β’ Drone warfare trend β’ Could double if trend continues β’ Strong government demand |
| Kratos Defense | KTOS | ~TBD | VERY HIGH |
β’ Up 188% already! β’ Chasing momentum = danger β’ Could crash anytime β’ Too expensive now |
β’ Autonomous drones β’ Hypersonic weapons β’ If early to trend: more gains β’ But probably too late |
| Stock | Ticker | Price | Why AVOID |
|---|---|---|---|
| Boeing | BA | $217.00 |
β DO NOT BUY β’ Quality control disasters β’ Door panels falling off planes β’ Criminal investigations β’ Union strikes β’ Cash flow problems β’ Buffett sold his entire position! |
| Intel | INTC | $36.17 |
β DO NOT BUY β’ Losing to AMD and NVIDIA β’ Manufacturing delays β’ Missing AI revolution β’ Dividend cut possible β’ "Cheap" for a bad reason |
| Mercury Systems | MRCY | $80.42 |
β DO NOT BUY β’ Too small and volatile β’ Not a Buffett-style company β’ Better options available β’ Higher risk, lower reward |
| General Dynamics | GD | $339.68 |
β οΈ MEDIOCRE β’ Not bad, but not great β’ LMT and RTX are better β’ Limited growth prospects β’ Your money works harder elsewhere |
What makes a high score? Competitive moat, predictable earnings, reasonable valuation, strong management, dividend history, recession-resistant business model
Record every purchase here - you'll thank yourself at tax time!
| Date | Stock | Amount Invested | Price Per Share | Shares Bought | Total Shares Owned | Total Invested | Notes |
|---|---|---|---|---|---|---|---|
| Oct 3, 2025 | LMT | $65 | $500.62 | 0.1299 | 0.1299 | $65.00 | Initial purchase |
| Oct 3, 2025 | LHX | $39 | $260.00 | 0.1500 | 0.1500 | $39.00 | Initial purchase |
| Oct 3, 2025 | RTX | $26 | $166.55 | 0.1561 | 0.1561 | $26.00 | Initial purchase |
| Day 1 Total: $130 invested | |||||||
| Oct 17, 2025 | LMT | $33 | $___ | ___ | ___ | $___ | Fortnight 1 |
| Oct 17, 2025 | LHX | $20 | $___ | ___ | ___ | $___ | Fortnight 1 |
| Oct 17, 2025 | RTX | $13 | $___ | ___ | ___ | $___ | Fortnight 1 |
| Continue this pattern every fortnight. Copy this table to a spreadsheet and keep adding rows! | |||||||
| Month | Total Invested | Current Value | Gain/Loss $ | Gain/Loss % | Notes |
|---|---|---|---|---|---|
| Month 1 (Oct 2025) | $196 | $___ | $___ | ___% | |
| Month 2 (Nov 2025) | $328 | $___ | $___ | ___% | |
| Month 3 (Dec 2025) | $526 | $___ | $___ | ___% | End of Phase 1 |
| Month 6 (Mar 2026) | $922 | $___ | $___ | ___% | End of Phase 2 - First rebalance check |
| Month 12 (Sep 2026) | $1,780 | $___ | $___ | ___% | End of Year 1 - Celebrate! π |
β DO NOT: Check prices before bed, first thing in the morning, or multiple times per day. This leads to emotional decisions and poor sleep!
| Question | If YES, Action Needed |
|---|---|
| Is any stock now >55% of portfolio? | Sell some, redistribute to others |
| Is any stock now <10% of portfolio? | Consider buying more or selling completely |
| Has a company fundamentally changed (bad news)? | Research deeply, consider selling |
| Are allocations within 5% of target? | No action needed - you're good! |
Calculate your exact investments based on different scenarios
| End of Month | Total Capital | LMT (45%) | LHX (28%) | RTX (20%) | TDG (5%) | NOC (2%) | |
|---|---|---|---|---|---|---|---|
| Month 1 | $196 | $88 | $55 | $39 | - | - | |
| Month 2 | $328 | $148 | $92 | $66 | - | - | |
| Month 3 | $526 | $237 | $147 | $105 | - | - | |
| Month 4 | $658 | $296 | $184 | $132 | - | - | |
| Month 5 | $790 | $356 | $221 | $158 | - | - | |
| Month 6 | $922 | $415 | $258 | $184 | - | - | |
| π Phase 2 Complete! Now add TDG and NOC | |||||||
| Month 7 | $1,054 | $474 | $295 | $211 | $53 | $21 | |
| Month 8 | $1,186 | $534 | $332 | $237 | $59 | $24 | |
| Month 9 | $1,318 | $593 | $369 | $264 | $66 | $26 | |
| Month 10 | $1,450 | $653 | $406 | $290 | $73 | $29 | |
| Month 11 | $1,582 | $712 | $443 | $316 | $79 | $32 | |
| Month 12 | $1,780 | $801 | $498 | $356 | $356 | $79 | $32 |
Simple, practical investing rules inspired by Buffett β explained like you're 5
If you buy a company, think about owning the whole business β its customers, products, and how it makes money.
A moat is something that protects a company from competitors (brand, tech, contracts). Companies with moats keep making money longer.
Don't overpay. If the company is worth $100, try not to pay $120. Buy when the price gives you a cushion.
Buffett buys companies to hold for years. Short-term noise is normal β focus on long-term business health.
Stay inside your "circle of competence." If you don't understand a company, don't buy it.
Companies that consistently generate cash and return some to shareholders are often higher-quality.
Companies to watch (short notes to help you learn)
| Company | Ticker | Why Watch | Risk Level |
|---|---|---|---|
| Lockheed Martin | LMT | Large, stable defense contractor with long-term government contracts and dividend | Low-Moderate |
| L3Harris Technologies | LHX | Strong in communications and electronic warfare; solid growth in 2025 | Moderate |
| RTX Corporation | RTX | Mix of defense & commercial aerospace; diversification benefits | Moderate |
| TransDigm Group | TDG | High-margin aerospace parts business; expensive but high quality | Moderate |
| Northrop Grumman | NOC | Leader in space systems and advanced programs (B-21) | Moderate |
| AeroVironment | AVAV | Drone specialist β high growth but very volatile | High |
| Kratos Defense | KTOS | Autonomous systems & drones β momentum but risky | Very High |
| NVIDIA | NVDA | AI leader β incredible growth but stretched valuations at times | Moderate-High |
| AMD | AMD | Strong semiconductor competitor β watch for product cycles | Moderate |
| Boeing | BA | Operational risks and quality issues β avoid until fixed | High |
| Intel | INTC | Struggling competitior in chips β not a Buffett-style pick | High |
Simple definitions for terms you'll see throughout this workbook β explained like you're 5
Tip: If you don't know the exact price at purchase, leave the "Price Per Share" blank and fill it later when Stake shows your trade confirmation.
| Term | Simple Definition (ELI5) | Why it matters |
|---|---|---|
| Allocation | How much of your money goes into one thing (like LMT). | Shows how much you believe in each company; helps manage risk. |
| Fractional Share | Buying part of a share when you can't afford the whole one. | Lets small investors own expensive stocks without saving hundreds of dollars. |
| Dollar-Cost Averaging | Putting the same money in regularly so you buy more when price is low and less when high. | Reduces risk of bad timing and smooths purchase price over time. |
| Moat | Something that protects a company from competitors (like a castle moat). | Companies with moats can make steady profits for longer. |
| P/E Ratio | Price divided by earnings β like how many years of profit you'd need to buy the company. | Helps compare if a stock is cheap or expensive relative to earnings. |
| Dividend Yield | Money the company gives back to shareholders each year, shown as a percent. | Provides income and compounds over time when reinvested. |
| Stop-Loss | An automatic sell order if the price falls too much (cuts losses). | Protects you from big losses on risky trades, but can trigger at random dips. |
| Margin of Safety | Buying below what you think a company is worth so you have a safety buffer. | Reduces risk if things go wrong or estimations are off. |
| Rebalancing | Adjusting your holdings so they match your target allocation again. | Keeps risk in check when one stock grows too big or small. |
| Candlestick | A simple chart that shows a stock's open, high, low, and close for a time period. | Used for short-term price action and entry/exit timing (learn basics on Stake). |
| Market Order | Buy/sell right away at the current market price. | Quick, but price can move between clicking and execution. |
| Limit Order | Set the exact price you want to buy or sell at; it only runs if the market reaches that price. | Gives control over price but might not execute. |
| EPS (Earnings Per Share) | The company's profit divided by its shares β how much each share 'earned'. | Used to gauge company profitability and compare with P/E. |
| Revenue | The total money a company made from selling stuff before costs. | Top-line growth indicates whether the company is expanding sales. |
| Guidance | What the company's managers tell investors they expect to earn in the future. | Helps set expectations; if guidance is lowered, stocks often fall. |
| Volatility | How much and how often a stock's price moves up and down. | Higher volatility = bigger swings (good for traders, stressful for investors). |
| Compound Interest | Money that grows by earning returns on top of returns β like a snowball getting bigger. | Powerful over decades β reinvesting dividends accelerates compounding. |
When you want to know your portfolio's current value: multiply each position's Total Shares Owned by the Current Market Price and add them together. If you don't know the market price, use Stake's quote for that day.
Example: If you own 0.5 shares of LMT and it's $500, that position is worth $250 (0.5 Γ $500).
Latest snapshot and links for each company (static at file creation). Click the links to read live coverage.
Snapshot: Latest quote and company news on Yahoo Finance.
Quick links:
Snapshot: Active news coverage; recent trading notes on MarketWatch.
Snapshot: Company news and press releases on rtx.com.
Snapshot: Press releases and conference call announcements; watch earnings dates.
Snapshot: Yahoo Finance for quotes; investor site for news and historical prices.
Snapshot: Small-cap defense tech β check RBC and analyst coverage for upgrades.
Snapshot: Big aerospace firm with recent regulatory and order news β check Investopedia and Barron's coverage.
Snapshot: Recent market chatter about potential foundry customer talks with AMD β watch Reuters.
Snapshot: AI leader β track earnings and guidance; Yahoo Finance has latest coverage.
Snapshot: Strong product cycles; watch quarterly revenue and guidance.
Snapshot: KTOS is momentum / speculative; TDG is high-margin parts supplier (watch valuation).