Triathlete
Keep it Simple..!
- Joined
- 10 November 2014
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Some interesting discussion in this thread, i have recently come to realise that the size of my portfolio is an important factor in its success, i enter new stocks on a rough equal position size ($) basis and have done since day one, the goal was to build a dividend stream via a mix of dividend and growth stocks, buy low sell higher but retain some shares in each div stock and move on.
If it works for you and are happy and comfortable with your strategy keep doing the same..
The Portfolio currently has almost 40 stocks with 4 stocks out performing thus lifting the portfolio return out of the ordinary, take the 4 best performers out and im not doing so well, i have to admit that the big 4 are somewhat random successes, i didn't know at the time of entry i just bought them because i had enough money for a new stock and saw some cheapness and potential.
This is what I was trying to get out....If these 4 stocks were say in the top 50 I would not have had a problem of increasing the position size with some that may not have been seeing any growth.....I know it would be too much for me to stay on top of a portfolio of that many 30-40.....My focus has always been to get rid of any stocks that are going nowhere, usually with a large number of stocks in a portfolio a third might be going up a third might be going sideways and a third would be going down.....
[URL="https://www.aussiestockforums.com/posts/949609/"]The Contents of a Bar[/URL]
I have noticed over the years that the top performers in my Portfolio keep changing and surprising, i dont know what the next big thing is so i just keep doing what i have been doing for the last 11 years because it works, one in ten will be a superstar out performer, money management is important.
As long as you are happy with your returns that is all that matters.....
I add 4 or 5 stocks per year to the portfolio and sell out of 1 or 2 and thats how i ended up with near 40, i should probably trim down to 30 or so, have started to re-balance over the last 2 years so the average position size has grown by maybe 15 or 20%, i have achieved a couple of size milestones this year, its been a hell of a journey.
How do you stay on top of 40 stocks.....do you use any type of service or do you do all the research yourself..???