Bro Billionaire Stocks
for Long-Term Indian Portfolios

Allocation Framework

Overall Portfolio Split

Our recommendation for most Indians: Moderate (30% US + 40% India equity + 20% debt + 10% tangible assets).

Within Your US Allocation

Example: You allocate ₹30 lakh (30% of ₹1 cr portfolio) to US stocks. How to split?

This gives you:

• Core stability: Microsoft + Apple (35%) won't crash 70%
• Growth engines: Nvidia + Tesla (40%) for explosive upside
• Diversification: Cloud, AI chips, EVs, crypto—not all correlated
• Small speculative bets: Palantir + Coinbase (15%)—high risk, high reward

Rebalancing Strategy

Why rebalance: Winners keep winning (Nvidia 10x), losers stay flat (Coinbase). Your50-50 portfolio becomes 90-10. Rebalancing locks profits and maintains risk levels.

Annual Rebalancing (Recommended)

Frequency: Once per year (e.g., every December)

Process:

1. Check each stock's % of US portfolio
2. If any stock >35%, trim to 25% (sell 10%)
3. If any stock <5%, either top up or exit completely
4. Reinvest trimmed profits into underweight stocks

Threshold Rebalancing (Advanced)

Trigger: Any stock deviates >10% from target allocation.

Example: Target 25% Nvidia. It shoots to 37% → Rebalance immediately (don't wait for year-end).

Benefit: Captures parabolic moves faster. Drawback: More trading, more taxes.

Tax-Optimized Execution

Hold >24 Months for LTCG

STCG (<24 months): Taxed as per slab (up to 30%)
LTCG (>24 months): 20% + indexation = ~15-18% effective tax

Strategy: When rebalancing, prioritize selling positions you've held >24 months. Minimize STCG hits.

Tax-Loss Harvesting

If Coinbase is down 30%, sell before March 31 to realize loss. Offset against Nvidia gains. Reduces tax liability.

Wash-sale workaround: Sell Coinbase, wait 30 days, buy back. Or buy a similar crypto stock (e.g., Robinhood) immediately.

Keep Profits in USD

Don't repatriate gains to India unless needed. Keep reinvesting in US stocks—defer Indian taxes, let USD assets compound.

Exit Strategy: When to Trim/Sell

Rule #1: Never Exit 100% on Fundamental Thesis

If you bought Nvidia for AI monopoly and that's intact, never sell all of it. Trim on valuation spikes, but keep core position.

Rule #2: Trim on Parabolic Moves

Trigger: Stock +200% in 12 months (e.g., Nvidia Jan '25: $500 → Jan '26: $1,500)

Action: Sell 30-50% → Lock massive profits, let rest ride.

Rule #3: Exit if Thesis Breaks

Examples of broken thesis:

• Tesla: FSD fails completely, competition destroys market share, Elon leaves
• Nvidia: AMD/Intel steal 50% market share, AI spending crashes
• Coinbase: Crypto banned globally, platform hacked

If fundamental story breaks, exit completely. Don't hope for recovery.

Rule #4: Lifecycle-Based Trim

Age 55-60: Start reducing high-volatility stocks (Tesla, Palantir). Shift to stable dividend payers (Apple, Microsoft).

Age 60-65: Reduce US exposure from 30% to 15-20%. Increase debt allocation.

Retirement (65+): Keep 10% in US blue chips for inflation hedge. Move rest to bonds/FDs.

Risk Management

Drawdown Tolerance

Expect 30-50% crashes. Tesla dropped 70% in 2022. If you can't stomach that, reduce allocation or stick to safer stocks (Microsoft, Apple).

Position Sizing

• No single stock >30% of US portfolio (prevents one blowup from wiping you out)
• High-risk stocks (Palantir, Coinbase) <10% each
• Core positions (Nvidia, Microsoft) 20-30% each

Liquidity Reserve

Keep 6-12 months expenses in Indian bank/liquid funds. Never sell US stocks in emergency. They're for 10+ year wealth, not short-term cash needs.

10-Year Target

Starting portfolio: ₹50 lakh in Bro Billionaire Stocks (2026)

Assumptions:

• Stock CAGR: 15% (conservative for mega-cap tech)
• INR depreciation: 3%/year
• Annual rebalancing, LTCG tax optimization

Result: ₹50L → ₹2.77 crore in 10 years = 18.5% CAGR in rupee terms.