My NAPS Portfolio

6th Oct by Francis Mills

9 comments 594 reads

--- How I created a NAPS Portfolio and why I am sharing my journey.

Hello to other Aussie and NZ Stockopedia users,

As someone who joined Stockopedia in the last 3 months, fired up by an introduction to the NAPS portfolio elsewhere and then finding a trove of data, information and research I was disappointed to find in 2025 a lack of commentary on the AU/NZ markets.

Despite this I was curious enough about the NAPS portfolio strategy, with its simple setup and management, that I built my Screen and Folio from which I generated my own NAPS-based portfolio. I had read articles on the Australian/New Zealand NAPS portfolio that was running in 2024 and was keen to see if I could achieve something similar. I was keen to see if I could create a process to systematically select stocks where risk is managed and perhaps emotions minimised.

Having done this and looking at it my mind came back again to the Aussie/NZ community here. I have a strong background in Finance but no real experience of writing on anything Finance-related, however I am drawn to talk about my experience and the stocks I chose in order to contribute to the local Stockopedia community.

Below I will outline the Screen, the Rules I chose and the reasons for them. I will also list the stocks chosen at that point in time and the practical steps and my thinking in building the portfolio. Lastly I'll describe the steps I take to track the portfolio, how it is set up, what I look at and monitor and ultimately how it has performed since its inception. Finally, I will give my thoughts on additional things I could do across the year and keep focused on the portfolio.

My aim in subsequent articles would be to dive into the individual stocks for a detailed look.

An Overview of the Portfolio

The portfolio is built on the following rules:

The Screen with criteria similar to the standard NAPS portfolio
Build an equal-weighted portfolio of 20 stocks
Hold for one year, rebalance using the same criteria and process

The benchmark for the portfolio is the Australian All Ords (^AORD) ignoring dividends and brokerage.

The Screen

The aim of the Screen is to identify the top 2 qualifying stocks in each of the 10 sectors, having in the end a set of 20…

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Clive44

9th Oct

Very interesting. Thank you for posting. Please keep regular updates coming, it will be fascinating to see your progress and any performance correlation to Ed's original NAPS.

Regards Clive

abtan

Hi Francis

Very interesting, thanks for posting.

I'm not an AUS/NZ subscriber (so I'm not sure why I'm even seeing this post), so I too will look forward to your updates.

Noris

Thank you, Francis, for such an interesting read! I love your systematic approach. I have my own version of the NAPS portfolio that focuses on Momentum and StockRank scores. My dilemma is about using or not using trailing stops. Opinions on this topic vary, but it seems that most people here, including the rules of the original NAPS, are against using stop losses. Since my version of NAPS leans more towards momentum, I believe that implementing some form of stop loss is essential. What are your thoughts on this? Please keep us updated on your ongoing research regarding your NAPS portfolio.

rmillaree

I hope you have found this article informative enough. In the coming weeks my aim is to publish a deeper dive into some of the key stocks in my portfolio, explaining the value thesis behind each one.

i think we cant have enough of upodates like like this - alwasy interesting to see if similar but different portfolio's perform against a suitable relevant benchmark for that folio.

Hat tip for the quality of your posting here Francis.

Francis Mills

12th Oct

Thank you rmillaree, much appreciated.

Hi Norris,

I think its a dilema for all of us, when to sell if a stock is really not going well. I mentioned I think 2 approaches but its interesting to see that in the overall context of the portfolio Sonic Healthcare may look bad despite the overall performance of the 20 being above the benchmark. The question therefore is perhaps, in a NAPS style or long term portfolio when do you trust in the balancing effect of the portfolio and when do you stem a stock in terminal decline almost?

I'm posting my first commentary on an individual stock later today, that should be interesting, but I might post an update to the 'my NAPS' perhaps every quarter, lets see.

Thank you Abtain, much appreciated.

Thanks Clive,

I will be posting my first commentary on an individual stock later today and see how it goes. I'm aiming to post for a few of those in my portfolio but also have a couple of other ideas, topics to cover. I like the Momentum Monday series AU/NZ had for example.

Yes it will be interesting to see how 'my NAPS' develops, I'm going to do at least a quarterly update and maybe focus on the changes as well as the overall performance. I will try to stay authentic to the NAPS ideal and see what themes come from that. Certainly it will be good to compare to the 2024 Aussie NAPS version or Ed's after a year.

ADM123

30th Oct

Congratulations on taking this approach. I have used a hybrid approach that takes into account macro conditions too. Also I am cautious on resource stocks as they are more speculative.

I would think a stop loss (-15% - 20%) is worth considering.

My NAPS Portfolio

An Overview of the Portfolio

The Screen

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About the Author

Francis Mills

9 comments

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