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Serious Trader
Newbie
Joined: 30/Mar/2011
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Posts: 9
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   Posted: 28/Apr/2011 at 1:37pm |
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I have increasingly diversified my portfolio as of late. I am already starting to see the gains
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basant
Admin Group
Joined: 01/Jan/2006
Location: India
Online Status: Offline
Posts: 18403
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Posted: 01/May/2011 at 11:22pm |
| Very roughly, I have between 65% and 68% in the four stocks I really like, between 20% and 25% in cash and equivalents, and the balance in the five stocks that are in the grooming stage.
You don't own or buy a large number of issues.
I have four core stocks that are exactly the thing I want. They represent the bulk of my holdings. I have five others in much smaller dollar amounts that are potential candidates to enter this group. But I'm not sure yet. If I were betting today, I'd bet on two and not on the other three.
Each decade up to this one--there hasn't been time to work it out for the Eighties--I have found a very small number of stocks, 14 in all, starting with 2 in the Thirties, that over a period of years made a profit for me of a minimum seven times the funds I put in and a maximum of many thousands of times my investment.
I don't want to spend my time trying to earn a lot of little profits. I want very, very big profits that I'm ready to wait for.- Philip Fisher |
Edited by basant - 01/May/2011 at 11:24pm
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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drsatish91
Senior Member
Joined: 17/Jan/2010
Location: India
Online Status: Offline
Posts: 241
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Posted: 26/Aug/2011 at 11:54am |
Originally posted by basant
I have 2 views on diversification. If you are a professional and have confidence, then I would advocate lots of concentration. For everyone else, if it’s not your game, participate in total diversification. The economy will do fine over time. Make sure you don’t buy at the wrong price or the wrong time. That’s what most people should do, buy a cheap index fund, and slowly dollar cost average into it. If you try to be just a little bit smart, spending an hour a week investing, you’re liable to be really dumb. - Warren Buffett |
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Basant Sir ... can we have flow chart type of approach for non professionals , who neither want to be totally diversified and nor a really dumb ?
any remedy for those kind of investors.. who cant be full timer but want to have concentrated folio and they cant afford PMS provided by good companies ..
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Dr.Satish M Jethwani
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smartcat
Senior Member
Joined: 29/Mar/2007
Location: India
Online Status: Offline
Posts: 4243
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Posted: 03/Sep/2011 at 5:35pm |
The Illusion Of Diversification: The Myth Of The 30 Stock Portfolio
http://www.investopedia.com/articles/stocks/11/illusion-of-diversification.asp#ixzz1Wt80bMmU
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The article starts off well with some interesting graphs, goes off course in the middle by saying you need to own 1000 stocks to be properly diversified and then loses it all in the end by saying its best to buy ETFs. 
An interesting read though.
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basant
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Joined: 01/Jan/2006
Location: India
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Posts: 18403
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Posted: 19/Jan/2012 at 2:03pm |
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Interesting:
http://widemoatinvesting.wordpress.com/2009/03/19/concentration-or-diversification/
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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Mohan
Senior Member
Joined: 09/Feb/2007
Location: United States
Online Status: Offline
Posts: 1855
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Posted: 19/Jan/2012 at 2:39am |
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Interesting article on Focus Investing and Position Sizing.
It is in three parts.
http://www.fool.com.au/2011/12/how-to-invest-fools-school/focus-investing-part-1/
http://www.fool.com.au/2011/12/how-to-invest-fools-school/focus-investing-%E2%80%93-part-2/
http://www.fool.com.au/2011/12/how-to-invest-fools-school/focus-investing-part-3/
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Be fearful when others are greedy and be greedy when others are fearful.
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kmp_saij
Senior Member
Joined: 19/Feb/2010
Online Status: Offline
Posts: 277
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Posted: 30/Apr/2012 at 8:20pm |
Originally posted by basant
No guarantees. Who said I bet on one or two companies only? It is a few but certainly not two!!! |
Dear Basantji,
I think portfolio of investor gets evolved over time with investor's knowledge, experience, skills, conviction etc. As investors become more experienced and matured, his portfolio moves from diversified to concentrated.
Please throw some light on above observation.
On a sidenote, my portfolio is more diversified than recommended figure of maximum 15 stocks in portfolio. That speaks I am less matured and less experinced investor and I am perfectly OK to hold 20-25 stocks in portfolio.
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Own whatever’s feared, shun whatever’s beloved.
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ash7979
Senior Member
Joined: 19/May/2010
Location: India
Online Status: Offline
Posts: 324
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Posted: 30/Apr/2012 at 9:39pm |
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I think with 20-25 stocks you will feel lucky if you are able to outperform leading MF...as peter lynch said " if you can beat MF return with individual investing then you should go alone, otherwise why bother"...So, if you dont mind could you please share your CAGR return with these 20-25 stocks in last 2-3 yrs..
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Fear can hold you prisoner. Hope can set you free....
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