How Many Stocks Should You Own?

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#16
(12-11-2013, 01:25 PM)yeokiwi Wrote: I may own 1000 stocks but if another value stock just crawls by, I will still take the bait.
Therefore, there is no limit to how many stocks I will like to own.
And, I can kick any stock out anytime. Especially, a supervalue one pops up and I am running out of cash, I will clear some stocks from my portfolio to buy it.

A value stock is a value stock. What has it got to do with no. of stocks in your portfolio? In mathematical term, both events are almost orthogonal.

Sorry for quoting but just a thought - suppose you have 10 stocks in your portfolio A1 - A10, say another one comes up and its better value than half the counters in your portfolio - do you i) add, ii) clear a few counters to overweight or iii) replace to equal weight of a weaker counter? I think it is this that should drive the allocation process.

Sometimes we think about the counters we own, and why/how we think they will outperform over time, it is seldom that they have the same reason and same timeframe. How do we then bridge between this, evaluate potential new acquisitions, and manage risk, to maximise our chances of winning? This is what that will drive the end number of counters for most people. However, it should be an outcome of the allocation process, not a first pass limiter.

For me it comes down to

1) how many do I know (size of my fishing net) and hence new ideas
2) amount of capital I have, and how quickly it is generated vs deployed
3) how easily I can any replace capital lost
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Messages In This Thread
How Many Stocks Should You Own? - by rogerwilco - 10-11-2013, 12:12 PM
RE: How Many Stocks Should You Own? - by opmi - 10-11-2013, 12:38 PM
RE: How Many Stocks Should You Own? - by brattzz - 10-11-2013, 03:35 PM
RE: How Many Stocks Should You Own? - by gautam - 11-11-2013, 05:56 PM
RE: How Many Stocks Should You Own? - by Ray168 - 11-11-2013, 06:08 PM
RE: How Many Stocks Should You Own? - by opmi - 11-11-2013, 08:05 PM
RE: How Many Stocks Should You Own? - by sgd - 11-11-2013, 08:58 PM
RE: How Many Stocks Should You Own? - by cif5000 - 12-11-2013, 01:09 PM
RE: How Many Stocks Should You Own? - by yeokiwi - 12-11-2013, 01:25 PM
RE: How Many Stocks Should You Own? - by wahkao - 27-12-2013, 08:10 PM
RE: How Many Stocks Should You Own? - by thefarside - 12-11-2013, 03:20 PM
RE: How Many Stocks Should You Own? - by erickong - 12-11-2013, 07:53 PM
RE: How Many Stocks Should You Own? - by yeokiwi - 12-11-2013, 10:10 PM
RE: How Many Stocks Should You Own? - by yeokiwi - 12-11-2013, 10:19 PM
RE: How Many Stocks Should You Own? - by Ben - 13-11-2013, 10:53 AM
RE: How Many Stocks Should You Own? - by pianist - 12-11-2013, 11:30 PM
RE: How Many Stocks Should You Own? - by opmi - 13-11-2013, 12:09 AM
RE: How Many Stocks Should You Own? - by zf87 - 13-11-2013, 01:07 PM
RE: How Many Stocks Should You Own? - by erickong - 13-11-2013, 11:54 PM
RE: How Many Stocks Should You Own? - by Ben - 14-11-2013, 01:12 PM
RE: How Many Stocks Should You Own? - by gautam - 14-11-2013, 01:43 PM
RE: How Many Stocks Should You Own? - by fat al - 13-11-2013, 10:13 PM
RE: How Many Stocks Should You Own? - by opmi - 14-11-2013, 01:48 AM

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