Portfolio Analysis Tutorial¶

Learn how to analyze your portfolio holdings and interpret the comprehensive analysis results, price targets, alternatives, and A+ improvement recommendations.

Overview¶

The Portfolio Holdings Analysis feature provides comprehensive, actionable analysis for each holding in your portfolio. This tutorial explains how to interpret the analysis results and take action on the recommendations.

Prerequisites¶

Before starting, ensure you have:

FinWiz installed and configured (see Getting Started)
Portfolio data in CSV format
Required API keys configured

Setting Up Your Portfolio Data¶

Portfolio CSV Files¶

Your portfolio holdings should be stored in CSV files:

ETFs: data/etf.csv
Stocks: data/stock.csv
Crypto: data/crypto.csv (if applicable)

CSV Format¶

Use this format for your portfolio files:

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Name,Ticker,Currency
Apple Inc,AAPL,USD
Microsoft Corporation,MSFT,USD
Vanguard Total Stock Market ETF,VTI,USD
Bitcoin,BTC,USD

Important Notes:

Use official ticker symbols
Specify the correct currency
Include the company/fund name for clarity

Running Portfolio Analysis¶

Basic Analysis¶

Bash

# Run complete portfolio analysis
uv run python src/finwiz/main.py --mode portfolio_review

Advanced Options¶

Bash

# Enable deep analysis for detailed grading
export DEEP_PORTFOLIO_ANALYSIS=true
uv run python src/finwiz/main.py --mode portfolio_review

# Analyze specific asset classes only
uv run python src/finwiz/main.py --mode portfolio_review --asset-class stock

Understanding Your Portfolio Report¶

Portfolio Dashboard¶

The top section shows your portfolio overview:

📊 Total Holdings: Number of assets in your portfolio
🎯 Grade Distribution: Breakdown of A+, A, B, C, D, F grades
💎 A+ Opportunities: Number of A+ rated alternatives available
📈 Portfolio Health Score: Overall portfolio quality (0-100)

Grade System¶

Grade	Meaning	Action
A+ 🌟	Exceptional quality	Keep, consider adding more
A ✅	High quality	Keep
B 👍	Good quality	Keep, monitor
C ⚠️	Average quality	Consider alternatives
D 🔻	Below average	Review for replacement
F ❌	Poor quality	Exit position

Individual Holding Analysis¶

Each holding includes:

Current Grade: Letter grade (A+ to F)
Composite Score: Numerical score (0.0-1.0)
Risk Assessment: Risk level (1-10 scale)
Price Targets: Buy/sell recommendations
Alternative Suggestions: Better investment options

Interpreting Price Targets¶

Price Target Components¶

Each holding with a KEEP or BUY recommendation includes specific price targets:

Current Price vs Fair Value¶

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Current Price: $150.00
Fair Value Estimate: $175.00
Upside Potential: +16.7%

Fair Value: Calculated using fundamental analysis (DCF, multiples)
Upside/Downside: Percentage difference from current price
Confidence Level: How confident the model is (0-100%)

Buy Targets 💰¶

Primary Buy Target: The optimal price to add to your position

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Buy Target: $140.00 (-6.7% from current)
Rationale: Technical support level + 10% margin of safety

Secondary Buy Target: Aggressive accumulation level

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Secondary Buy: $130.00 (-13.3% from current)
Rationale: Strong support from 200-day moving average

How to Use:

Set limit orders at these levels
Use dollar-cost averaging between targets
Don't chase prices above fair value

Sell Targets 📉¶

Primary Sell Target: Take profit level

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Sell Target: $180.00 (+20% from current)
Rationale: Resistance level + fair value reached

Stop-Loss Level: Risk management exit

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Stop-Loss: $135.00 (-10% from current)
Rationale: Below key support, invalidates thesis

How to Use:

Set stop-loss orders immediately after buying
Take partial profits at primary target
Reassess if stop-loss is triggered

Evaluating Alternative Investments¶

When Alternatives Are Suggested¶

Alternatives appear for holdings graded below B (C+, C, D, or F). The system identifies better investment options by:

Prioritizing A+ Candidates: First checks for A+ rated alternatives
Matching Asset Class: Ensures alternatives are in the same asset class
Comparing Metrics: Evaluates expense ratios, fundamentals, and liquidity
Calculating Improvements: Shows expected grade and score improvements

Comparison Analysis¶

Each alternative shows a detailed comparison:

Metric	Current Holding	Alternative	Improvement
Grade	C	A+	⬆️ +2 grades
Expense Ratio	0.45%	0.15%	⬇️ -0.30%
5Y Return	8.2%	12.5%	⬆️ +4.3%
Risk Score	6/10	5/10	⬇️ Lower risk

Key Advantages¶

Each alternative lists specific advantages:

✅ Lower costs: Save $300/year on $100k investment
✅ Better diversification: 500 holdings vs 50
✅ Higher liquidity: $2B daily volume vs $50M
✅ Stronger fundamentals: Better P/E, growth metrics

Transition Strategies¶

Immediate Swap 🚀

Best for: Tax-advantaged accounts (IRA, 401k)
Action: Sell current, buy alternative same day
Tax Impact: None (tax-deferred account)

Gradual Transition 📅

Best for: Taxable accounts with gains
Action: Sell 25% per quarter over 1 year
Tax Impact: Spread capital gains across tax years

Tax-Optimized 💡

Best for: Large positions with significant gains
Action: Harvest losses elsewhere, offset gains
Tax Impact: Minimized through strategic timing

A+ Improvement Roadmap¶

Understanding the Roadmap¶

The A+ Improvement Roadmap shows how to systematically upgrade your portfolio quality.

Current State Analysis¶

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Current Portfolio Composition:
• A+ Holdings: 15% (Target: 40%)
• A Holdings: 25%
• B Holdings: 35%
• C Holdings: 20%
• D/F Holdings: 5%

Gap to Target: -25% A+ allocation

Phased Implementation Plan¶

Phase 1: Exit Poor Performers (Months 1-3) 🔴

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Priority Exits:
1. Ticker ABC (Grade F) → Replace with A+ Alternative XYZ
   Expected improvement: +$1,200/year

2. Ticker DEF (Grade D) → Replace with A+ Alternative UVW
   Expected improvement: +$800/year

Phase 2: Upgrade Average Holdings (Months 4-6) 🟡

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Upgrade Targets:
1. Ticker GHI (Grade C) → Replace with A+ Alternative RST
   Expected improvement: +$600/year

2. Ticker JKL (Grade C) → Replace with A+ Alternative MNO
   Expected improvement: +$500/year

Phase 3: Optimize Good Holdings (Months 7-12) 🟢

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Optimization Opportunities:
1. Ticker PQR (Grade B) → Consider A+ Alternative if cost-effective
   Expected improvement: +$300/year

Expected Outcomes¶

After full implementation:

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Target Portfolio Composition:
• A+ Holdings: 40% ⬆️ (+25%)
• A Holdings: 35% ⬆️ (+10%)
• B Holdings: 20% ⬇️ (-15%)
• C Holdings: 5% ⬇️ (-15%)
• D/F Holdings: 0% ⬇️ (-5%)

Expected Annual Benefit: +$3,400/year
Portfolio Health Score: 85/100 (from 62/100)

Position Sizing Recommendations¶

Understanding Position Sizing¶

Position sizing determines what percentage of your portfolio each holding should represent.

Sizing Actions¶

🟢 HOLD: Current size is optimal

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Current: 5.2%
Recommended: 5.0%
Action: No change needed

🔵 ADD: Position is underweight

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Current: 2.1%
Recommended: 5.0%
Action: Add $2,900 to reach target (on $100k portfolio)

🟡 TRIM: Position is overweight

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Current: 12.5%
Recommended: 8.0%
Action: Sell $4,500 to reach target (on $100k portfolio)

🔴 EXIT: Position should be eliminated

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Current: 3.2%
Recommended: 0%
Action: Sell entire position ($3,200 on $100k portfolio)
Reason: Grade F, better alternatives available

Concentration Limits¶

The system enforces prudent concentration limits:

Limit Type	Maximum	Purpose
Single Stock	10%	Avoid company-specific risk
Single Sector	35%	Diversify across economy
High-Risk Asset	3%	Limit speculative exposure
Total Alternatives	5%	Control experimental positions

Taking Action on Recommendations¶

Step-by-Step Implementation¶

1. Review the HTML Report¶

Open output/portfolio/portfolio_review_fr.html in your browser:

Read the portfolio dashboard
Review each holding's analysis
Note all recommended actions

2. Prioritize Actions¶

Create your action list:

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High Priority (This Month):
☐ Exit: Ticker ABC (Grade F)
☐ Trim: Ticker DEF (12% → 8%)
☐ Add: Ticker GHI (2% → 5%)

Medium Priority (Next Quarter):
☐ Replace: Ticker JKL with A+ alternative
☐ Review: Ticker MNO (stale data)

Low Priority (Next 6 Months):
☐ Optimize: Consider A+ alternatives for B-grade holdings

3. Execute Trades¶

For each action:

Check current prices against buy/sell targets
Set limit orders at recommended price levels
Set stop-losses for risk management
Document trades for tax records

4. Monitor and Adjust¶

Weekly: Check if limit orders executed
Monthly: Review portfolio vs targets
Quarterly: Re-run full analysis
Annually: Reassess overall strategy

Tax Considerations¶

Tax-Advantaged Accounts (IRA, 401k, Roth IRA):

✅ No immediate tax impact
✅ Execute swaps immediately
✅ Rebalance freely

Taxable Accounts:

⚠️ Capital gains tax applies
💡 Harvest losses to offset gains
💡 Hold > 1 year for long-term rates
💡 Consider tax-loss harvesting in December

Data Quality and Sources¶

Understanding Data Freshness¶

Each holding shows data freshness indicators:

🟢 Fresh (< 7 days old)

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Data as of: 2025-10-26
Status: Fresh ✅
Confidence: 95%

🟡 Recent (7-30 days old)

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Data as of: 2025-10-15
Status: Recent ⚠️
Confidence: 85%

🔴 Stale (> 30 days old)

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Data as of: 2025-09-10
Status: Stale ⚠️⚠️
Confidence: 65% (reduced by 20%)
Action: Manual review recommended

Data Sources¶

All analysis cites specific sources:

Stock Analysis:

SEC Filings: EDGAR (10-K, 10-Q, 8-K)
Price Data: Yahoo Finance, Alpha Vantage
Fundamentals: Company financial statements
Analyst Ratings: Aggregated consensus

ETF Analysis:

Fund Data: Prospectus, fact sheets
Holdings: Fund provider websites
Performance: Yahoo Finance, Morningstar
Expense Ratios: Official fund documents

Crypto Analysis:

Price Data: Coinbase, Kraken APIs
Market Data: CoinMarketCap
Technical Indicators: TradingView
On-chain Metrics: Blockchain explorers

Frequently Asked Questions¶

Q: How often should I run the analysis?¶

A: Quarterly for most investors, monthly if you're actively managing. Market conditions change, and fresh analysis ensures your decisions are based on current data.

Q: Should I follow all recommendations immediately?¶

A: No. Prioritize:

Exit D/F grade holdings (high priority)
Trim overweight positions (medium priority)
Add to underweight A+ holdings (medium priority)
Optimize B-grade holdings (low priority)

Q: What if I disagree with a recommendation?¶

A: The analysis is a tool, not a mandate. Consider:

Your personal risk tolerance
Tax implications
Transaction costs
Your investment thesis
Time horizon

Use the analysis to inform your decisions, not dictate them.

Q: How accurate are the price targets?¶

A: Price targets are estimates based on current data and models. They have varying confidence levels (shown in the report). Use them as guidelines, not guarantees. Always:

Set stop-losses
Diversify
Don't invest more than you can afford to lose

Next Steps¶

After completing your first portfolio analysis:

Learn Deep Analysis: Understand the Deep Analysis Crew
Explore Configuration: Check Performance Configuration
Review API Reference: Browse the API Documentation
Set Up Monitoring: Learn about Portfolio Monitoring

Support and Resources¶

Additional Documentation¶

How-to Guides: How-to Section
Reference: API Reference
Explanations: Architecture and Concepts

Getting Help¶

Issues: Report bugs or request features on GitHub
Questions: Check the FAQ or developer documentation
Updates: Follow release notes for new features

Version: 2.0 Last Updated: 2025-10-26