Understanding the Sun in Your Investment Portfolio
- SHALABH BHATNAGAR
- Jul 13
- 6 min read
In the cosmos of investing, the "Sun" is more than just a metaphor. It's the gravitational anchor of your financial universe. Just as the Sun holds planets in orbit, your Sun holdings are the central, stable forces that give structure and long-term energy to your portfolio. But how do you know which investments deserve that position? And more importantly, when should you replace or reduce them?
Let’s embark on this journey like cosmic explorers, not just investors — and find the Sun(s) that will guide our wealth across financial galaxies.
🔆 Sun Portfolio Quick Summary
What is a Sun? High-conviction, long-term core stock
Traits: Strong moat, trend-backed, financially solid
How to Find: Score based on conviction, data, technicals
When to Exit: Thesis break, overvaluation, better Sun emerges
Toolkit: Scoring table + Hero Stock Test + Audit ritual
What is a Sun Stock?
Imagine you’re designing your personal solar system. Your Sun isn’t the flashiest object. It’s the most important — the one that keeps everything else in balance.
A Sun is a high-conviction, long-term holding that you believe in deeply. It's not about hype or recent gains—it's about the role this company or asset plays in your vision of the future. Sun stocks are:
🌐 Businesses with strong moats (i.e., difficult to disrupt)
🌱 Found in secular growth markets (cloud, AI, fintech, etc.)
💰 Financially sound with consistent earnings and free cash flow
🧠 Led by competent, visionary management
🛡️ Companies you’d be comfortable holding through thick and thin
Sun stocks are not "forever stocks" by default, but they should be the last things you consider selling. They provide peace of mind and portfolio gravity.
How to Find Your Sun: A Step-by-Step Guide
Your Sun isn’t just a great company - it’s your personal North Star. It aligns your beliefs, knowledge, and emotional resilience.
✍️ Step 1: Run the Conviction Deep-Dive
Score each from 0 to 5:
👉 Score ≥ 20? → Candidate for Sun. Score < 15? → Earth, Moon, or skip it.
🔍 Step 2: Analyze the Fundamentals
Check the data:
✅ Passes this test? It's fundamentally sound.
⏳ Step 3: Historical Behavior
Your Sun should behave like a star — steady, luminous, and durable.
Ask:
Has it weathered past crashes well?
Does it bounce back stronger over time?
Has it shown 5+ years of consistent upward progress?
Is there a strong R&D pipeline or product vision?
✅ If it shines in hard times too - it’s a keeper.
📈 Step 4: Technical Confirmation
Even with great fundamentals, don’t buy blindly. Ensure good timing.
Check:
📊 Long-term uptrend (200-day moving average sloping upward)
🔄 Support respected near the 50- or 100-day moving average
🕯️ Weekly candle trend shows higher highs and higher lows
🔊 Volume spikes on up days, not just sell-offs
🚀 Breakout from consolidation with volume (ideal entry)
If the technicals and fundamentals align, it’s a strong candidate.
📓 Step 5: Use the Sun Scoring Template
🌟 Step 6: The Hero Stock Test
Close your eyes and ask:
“If I could only own 1 stock for the next 10 years, and I’d be paid based on its performance - what would I choose?”
Whatever you say - that’s your first Sun.
☀️ Sun Selection in Summary:
✨ A true Sun aligns your beliefs, data, and emotions into a gravitational core.
And here's an important realization: your Sun may reflect the universe you personally explore. As someone immersed in science, AI, and robotics, I naturally lean toward tech-driven companies — because that’s the world I understand best. If you're a doctor, you might find your Sun in healthcare. If you're an engineer, maybe in infrastructure. A farmer might spot it in agri-tech. The Sun isn’t just about metrics — it’s about how well you can see into its core. So, embrace your domain expertise — it’s not bias, it’s an edge.
🧪 Real-Life Example: Why NVDA is a Sun
Moat: Dominates AI compute, CUDA, ecosystem control
Trend: Central to AI, robotics, gaming, and datacenters
Financials: Massive revenue, profit, and free cash flow
Emotional: Confident to hold or buy more on dips
Technicals: Long-term trend, strong breakout history
Result: My Sun
🚫 Common Mistakes in Sun Selection
Picking a hot stock without truly understanding it
Confusing short-term hype with long-term value
Labeling speculative plays as Suns due to emotional attachment
Ignoring red flags just because it once performed well
🔁My Sun Audit & Exit Framework
Each year, I don’t just reflect — I review with a structured lens. Suns don’t disappear overnight, but sometimes they fade slowly, like stars nearing their final fusion. Here's how I decide whether to hold, trim, or exit.
🌘 Red Flag Checklist (Sell Completely if 2 or More Are True):
❌ Core thesis has broken (e.g., moat lost, massive disruption, fraud)
❌ Management shift leading to vision loss or misalignment
❌ Regulatory/legal change alters the business landscape permanently
❌ Business model is no longer relevant or scalable
🌓 Partial Exit Triggers (Trim Position or Write Covered Calls):
⚠️ Valuation is extremely stretched (P/E, P/S far beyond historical mean)
⚠️ Growth is slowing (3+ quarters flat revenue or user metrics)
⚠️ Stock has become oversized in portfolio (e.g., >30% weight)
⚠️ Better Sun has emerged with stronger metrics and clearer upside
🌞 Hold & Add More If:
✅ Core thesis is stronger than ever
✅ Price has dropped, but fundamentals remain intact
✅ New catalyst or innovation is unfolding
✅ Market is overreacting to a temporary headwind
I also ask myself:
Would I still choose this as my Hero Stock today?
Am I holding this because of belief - or just familiarity?
By using this framework, I make sure I’m not worshiping fading stars. I realign - just as galaxies do - to center my future around the Suns still burning bright.
✅ 15-Minute Sun Discovery Checklist
My Quick Start Routine: this is how I take a break from complex theories and simply check if I’m aligned with the cosmos of my portfolio:
Choose 3 stocks you currently hold or admire.
Run the Conviction Deep-Dive - score them using the 5 key questions.
Check Fundamentals - verify financial health using revenue growth, margins, etc.
Review Historical Behavior - see if the stock has bounced back through past downturns.
Scan Technicals - ensure it's not breaking down or stuck in a downtrend.
Score with the Sun Template - fill in the Sun Scorecard out of 30.
Do the Hero Stock Test - pick one stock you'd hold for the next decade.
Set an annual review date - and repeat this ritual to stay grounded.
By doing this, I get clarity on what truly belongs in the center of my investing universe.
Simple Workbook to guide you https://docs.google.com/spreadsheets/d/1dxGBF1ExNqaVB8R8IC2h9_lcWwqsXuZR/edit?usp=drive_link&ouid=109498373317668449958&rtpof=true&sd=true
Conclusion: Let Your Suns Shine, But Don’t Worship Them
Your Suns guide your wealth. They bring the most stability and long-term growth potential. But they’re not sacred. Stay grounded in research, revisit your thesis, and be willing to let go when they stop radiating value.
In the end, building a great portfolio is less about catching shooting stars and more about choosing Suns that won’t burn out.
Next Up: We'll dive into "Earth Stocks" - the quiet engines that generate yield, stability, and tactical balance for your galaxy.
Disclaimer: This is for educational and entertainment purposes only. Not financial advice. Always do your own research. I'm just an adventurer, not a financial guru - charting my own galaxy, one star at a time.
** This is for educational and entertainment purposes only. Not financial advice. Always do your own research.
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