Western Allied Strategic Infrastructure Independence Portfolio
Building concentrated exposure to critical infrastructure across allied nations (Australia, U.S., U.K., Canada, Europe) that enables independence from Chinese and Russian supply chains. This strategic portfolio positions for the AI infrastructure boom and Western supply chain resilience.
10 core positions at approximately $19,200 each, strategically scaled in over 2-4 weeks on market dips to optimize entry points.
Income - 35%
High-yield dividend and covered call ETFs designed to generate $10,000-12,000 annually, providing consistent cash flow and portfolio stability.
Ballast + Trading - 20%
Split between $28,000 in TLT/GLD for risk-off protection and $20,000 cash reserved for opportunistic swing trading opportunit
Last Updated: November 13, 2025
Investment Thesis: Picks & Shovels approach to Strategic Infrastructure
Core Conviction: Strong belief in AI & the need for the tools & materials for the infrastructure buildout.
The artificial intelligence revolution requires unprecedented investment across four critical pillars that form the foundation of this strategic portfolio.
Compute Infrastructure
Advanced chips, GPUs, and networking equipment powering AI training and inference. Every AI data center globally depends on this hardware layer for processing capability.
Power Generation
Nuclear energy providing 24/7 baseload power for AI data centers. Carbon-free, reliable electricity generation at the massive scale required for continuous AI operations.
Critical Materials
Rare earth elements for magnets and motors, uranium for nuclear fuel. Essential raw materials enabling every layer of modern technology and defense infrastructure.
Defense Systems
Protection and security infrastructure for critical facilities and naval operations. Software and hardware systems ensuring operational continuity and national security.
Geopolitical Driver: Western Independence
Western nations are systematically building infrastructure independence from China and Russia across semiconductor supply chains, critical minerals, AI compute capacity, defense systems, and energy infrastructure. This multi-decade trend creates sustained demand for portfolio holdings.
Thesis: AI compute dominance with 90%+ GPU market share. CUDA software moat makes switching prohibitive for AI data centers globally.
Position: ~$19,200 | Core AI infrastructure
3
LRCX - Lam Research
Thesis: Semiconductor manufacturing equipment duopoly. Cannot manufacture advanced chips without their etching and deposition tools.
Position: ~$19,200 | Chokepoint in chip manufacturing
4
ANET - Arista Networks
Thesis: AI data center networking leader. Dominates high-speed networking for AI training clusters at Microsoft, Meta, and cloud providers.
Position: ~$19,200 | Essential AI infrastructure
Tier 2 Holdings
1
CRWV - CoreWeave
Thesis: GPU infrastructure capacity provider with $10B+ Microsoft partnership. Rents NVIDIA GPUs to AI companies facing supply constraints.
Position: ~$19,200 + CLSK proceeds
2
PLTR - Palantir
Thesis: Defense and AI software embedded in critical systems. Irreplaceable in US defense/intelligence with expanding UK and allied government presence.
Position: ~$19,200
3
CEG - Constellation Energy
Thesis: Nuclear power for AI data centers. Microsoft/Three Mile Island 20-year deal establishes template for carbon-free baseload power.
Position: ~$19,200
4
MP - MP Materials
Thesis: US rare earths production. Mountain Pass facility represents only significant US rare earth mine, onshoring processing to reduce China dependence.
Position: ~$19,200
Completing the Core Portfolio
UUUU - Energy Fuels
Thesis: Rare earths plus uranium dual exposure. White Mesa rare earth processing combined with uranium production captures both critical materials themes for data centers and defense.
Position Size: ~$19,200
LYC - Lynas Rare Earths
Thesis: Established rare earth producer aligned with Five Eyes and AUKUS. Only proven, scaled producer outside China with Malaysian processing serving Western supply chains and heavy rare earths capability.
Position Size: ~$19,200
Satellite Position: DRO (DroneShield)
Trimmed to house money position - riding free shares after recovering initial investment plus profits. Australian counter-drone technology serves as asymmetric upside with zero remaining risk. Profits reallocated to fund LYC position.
Geographic & Allied Nation Alignment
United States 🇺🇸
Domestic Infrastructure: BWXT, CEG, MP, UUUU
Strategic focus on naval nuclear systems, power generation for AI infrastructure, and critical minerals independence from foreign sources.
Technology and AI infrastructure companies serving allied nations across North America, Europe, and Pacific partnerships.
Australia 🇦🇺
Five Eyes/AUKUS Partner: LYC, DRO (house money)
Critical minerals production and defense technology supporting Western supply chain independence and military partnerships.
Zero exposure to China or Russia - All holdings support Western allied independence and supply chain resilience
Recent Portfolio Actions & Updates
✅ Executed Transactions
CLSK Exit - November 13, 2025
Exited position down 13.38% and reallocated capital to CRWV. Bitcoin miner pivot story proved too speculative compared to CoreWeave's proven GPU infrastructure model with hyperscaler contracts.
DRO Profit-Taking - November 13, 2025
Trimmed DroneShield position to house money after significant gains. Realized profits allocated to fund new LYC position while maintaining asymmetric upside through remaining free shares.
🔄 In Progress Actions
01
Building Core Positions
Systematically building positions across all 10 core holdings over next 2-4 weeks, timing entries on market dips.
02
Setting Entry Alerts
Configuring TradingView alerts for optimal entry points on 5-10% pullbacks across all strategic positions.
03
LYC Position Opening
Initiating Lynas Rare Earths position using DRO profits combined with new capital allocation for geographic diversification.
Why This Portfolio Wins
Every Dollar Flows Through These 10 Companies
1
Portugal's $10B Microsoft Data Center
Requires NVDA GPUs, ANET networking equipment, and CRWV-style infrastructure deployment for operational capability.
2
US Naval Expansion (AUKUS)
Depends exclusively on BWXT reactors for submarine and carrier propulsion systems under multi-decade partnership agreements.
3
Data Center Power Needs
Solved by CEG nuclear generation and UUUU uranium fuel supply for carbon-free baseload electricity at unprecedented scale.
4
Defense/EV/Wind Supply Chains
Require MP, UUUU, and LYC rare earths for permanent magnets in motors, generators, and defense applications.
5
AI Software & Defense
Run on PLTR embedded systems across government, intelligence, and commercial platforms with irreplaceable integrations.
6
Chip Manufacturing
Enabled by LRCX equipment for etching and deposition processes in advanced semiconductor fabrication facilities globally.
Geographic Arbitrage Advantage: Capturing global infrastructure spending through liquid, tradeable US and Australian-listed companies with transparent reporting and deep liquidity.
Risk Management Framework
Concentration Risk
Mitigation Strategy: 10 positions diversified across different infrastructure layers prevents single point of failure. Each holding serves distinct role in technology stack.
Geopolitical Risk
Mitigation Strategy: Allied nations only with zero China/Russia exposure. If US-China tensions escalate, portfolio actually benefits from accelerated onshoring initiatives.
Technology Risk
Mitigation Strategy: Mix of proven producers (LYC, MP currently producing) and growth companies (CRWV scaling). Not dependent on single technology pathway winning.
Market Risk Mitigation
25% income layer provides consistent cash flow during market volatility
20% ballast allocation (TLT/GLD/SLVR/GLD/NUGT/) provides risk-off hedge during downturns
House money positions (DRO model) deliver asymmetric upside with zero remaining downside risk
Staggered entry strategy using alerts on 5-10% dips optimizes cost basis across holdings
Income Generation Strategy
Target: $40,000 Annual Income
Income Layer Details
The 25% allocation ($80,000) to income-generating assets targets 8-10% annual yield through strategic deployment in covered call ETFs and high-yield dividend funds.
High-yield dividend funds: Sector-focused income generation
Tactical rotation: Based on yield optimization and market conditions
Cash Flow Benefits
Consistent income stream supports living expenses while enabling patience with strategic growth positions during market volatility.
Income layer provides dry powder for opportunistic additions without disturbing core holdings.
Monitoring & Alert System
TradingView Configuration
Systematic monitoring across all core 10 positions ensures optimal entry timing and risk management. Each position requires multi-layered alert system for disciplined execution.
01
5% Dip Alerts
First entry opportunity signals on moderate pullbacks from recent highs, indicating potential accumulation zones.
02
10% Dip Alerts
Stronger entry opportunity signals on significant corrections, providing enhanced risk-reward for position building.
03
Relative Strength Monitoring
Track performance versus sector and overall market to identify leadership and weakness patterns.
04
Volume Pattern Analysis
Monitor volume signatures for institutional accumulation or distribution signaling major trend changes.
Key Catalysts to Monitor
Technology & Infrastructure
NVDA: Blackwell GPU ramp, data center revenue growth
CRWV: European expansion, hyperscaler contracts
CEG: Additional data center power deals
Critical Materials
MP, UUUU, LYC: China export restrictions, rare earth pricing
BWXT: AUKUS submarine orders, reactor contracts
PLTR: Government wins, AIP adoption
Weekly Review
Price action assessment, news flow analysis, and entry opportunity identification
Monthly Review
Position sizing rebalance and income generation performance evaluation
Quarterly Review
Comprehensive thesis validation with add/drop decisions and strategic adjustments
Watchlist: Future Opportunities
USAR - USA Rare Earth
Why Watching: Vertical integration from mine to magnet with heavy rare earth focus. Barbara Humpton CEO brings credibility.
Why Not Buying Yet: Pre-revenue company with history of production delays. Waiting for Q1 2026 production proof.
Entry Criteria:First commercial magnet sales and proof of 1,200 ton annual capacity achievement.
Nscale
Why Watching: European GPU infrastructure following CoreWeave business model with $14B Microsoft deal providing validation.
Why Not Buying Yet: Private company with IPO targeted for late 2026. No public market access currently available.
Entry Criteria:IPO execution at reasonable valuation relative to CRWV comparables.
VST - Vistra Energy
Why Watching: Natural gas plus nuclear power generation with strong Texas data center exposure and capacity.
Why Not Buying Yet: Already have CEG covering nuclear and data center power theme without redundancy.
Entry Criteria: If CEG position requires geographic or operational diversification.
Long-Term Vision: 2026-2028
3-5 Year Strategic Targets
1
2026: Production Milestones
LYC: Sustained production at expanded capacity serving Western supply chains
MP: Phase II processing online, achieving reduced China dependence
USAR: Proof of commercial magnet production triggering re-evaluation for portfolio addition
2
2027: Infrastructure Scaling
AI Data Centers: $400B+ annual capex benefiting NVDA, ANET, CRWV, CEG
AUKUS Program: First submarines under construction benefiting BWXT with multi-decade revenue
CEG Expansion: 3-5 additional data center power contracts following Three Mile Island model
3
2028: Market Maturation
Rare Earth Pricing: Sustained elevation from China export restrictions benefiting MP, UUUU, LYC
Supply Chain Security: Western independence achieved across critical technology layers
2.5-3x
Target Total Return
Over 5-year period (25-30% CAGR) driven by AI infrastructure boom and geopolitical tensions
$400B+
Annual AI Capex
Global data center investment benefiting entire portfolio infrastructure stack
15%
Ballast Protection
Allocation limits downside while income layer provides consistent dry powder for opportunities
Exit Criteria & Profit-Taking Strategy
Position-Specific Exit Triggers
Sell Immediately If:
Company loses strategic competitive position (e.g., competitor breaks NVDA's CUDA moat)
Business model fundamentally breaks (e.g., CRWV loses hyperscaler contracts)
Superior alternative emerges with proven execution (e.g., USAR demonstrates vertical integration at scale)
Single position exceeds 15% of total portfolio value (concentration risk management or review thesis)
Valuation becomes extreme at 50%+ above fair value estimate with limited upside
Near-term catalysts fully priced into current stock price with reduced asymmetry
Profit-Taking Discipline
40%+ gains: Trim positions to lock profits, reallocate capital to lagging positions with better risk-reward
High IV periods: Deploy covered calls on NVDA and CRWV for income generation when implied volatility spikes
Swing trade cash: Deploy opportunistically on 10%+ corrections in core holdings for tactical positioning
House money model: Follow DRO example - trim winners to free shares, maintain asymmetric upside exposure
Key Investment Principles
Quality Over Quantity
10 concentrated positions in best-in-class companies, not 30 mediocre holdings diluting returns. Each position must earn its place.
Theme-Driven Selection
Every position must fit Western Allied Infrastructure Independence thesis. No exceptions for attractive valuations outside core theme.
Proof Required Before Entry
Pre-revenue companies like USAR remain on watchlist until commercial production proven. No speculative pre-revenue bets in core portfolio.
House Money Asymmetry
Trim winners to free shares, let them run asymmetrically following DRO model. Locks in gains while maintaining unlimited upside exposure.
Discipline Beats Emotion
Exit poor positions fast (CLSK example), scale into quality on dips. Avoid anchoring bias and sunk cost fallacy in decision-making.
Income Supports Risk
25% income layer funds living expenses, enables patience with strategic positions during volatility. Cash flow creates psychological comfort.
Portfolio Documentation & Updates
Recent Updates - November 13, 2025
CLSK Exit Executed
Exited position with 13.38% loss, immediately reallocated capital to CRWV. Bitcoin miner pivot story too speculative versus proven GPU infrastructure model with hyperscaler contracts.
DRO Profits Captured
Trimmed DroneShield to house money position. Realized profits allocated to fund new LYC position while maintaining free upside exposure.
Portfolio Structure Finalized
Core 10 structure completed and refined. Portfolio theme crystallized as "Western Allied Strategic Infrastructure Independence" with clear thesis.
Execution Timeline Set
Ready to systematically scale into positions over next 2-4 weeks using disciplined entry strategy on market pullbacks.
Site Owner
Sheila Stacks Sats
Purpose
Track strategic infrastructure portfolio decisions and thesis evolution
Platform
Maintain simplicity with 6 page site for easy updates and reference access
Add your updates and observations below as the portfolio evolves and market conditions develop.