I try to balance between “buy businesses that don’t require you to diversify” and guarding against my own biases and stupidly (which is high, trust me). Currently have under 20 businesses in the portfolio but top 5 make up over 80% or so.
All uncorrelated bets, ones that work well when high liquidity is in, other more event driven... I think everyone should have their own definition as you posted ;)
With income, it's kinda like regular inflows. So 3-10% total portfolio value for each position, with 10% as the ceiling for adding new capital but existing positions can grow beyond that. Losers caused by stupidity are trimmed, otherwise most things stay a while. Find 1-2 ideas each year for extra capital that's not related to large positions. Overtime, it gets diversified.
I try to balance between “buy businesses that don’t require you to diversify” and guarding against my own biases and stupidly (which is high, trust me). Currently have under 20 businesses in the portfolio but top 5 make up over 80% or so.
Hope it works! 30 stocks - 10 coffee can: 20 the rest. It’s less clean and more changeable than that though as I’m a guilty but self aware over-trader
Roughly 1/2 coffee can (> concentrated); 1/2 dividend growth/ high yield (<concentrated).
All uncorrelated bets, ones that work well when high liquidity is in, other more event driven... I think everyone should have their own definition as you posted ;)
With income, it's kinda like regular inflows. So 3-10% total portfolio value for each position, with 10% as the ceiling for adding new capital but existing positions can grow beyond that. Losers caused by stupidity are trimmed, otherwise most things stay a while. Find 1-2 ideas each year for extra capital that's not related to large positions. Overtime, it gets diversified.
over 40
This is because I go into the higher risk microcaps, Emerging market space