(12-28-2021, 10:17 AM)Scooterd Wrote: "Diversification is only a free good if one cannot identify mispriced securities.
Once the concept of mispricing is introduced, diversifying away from undervalued securities reduces a portfolio’s expected return. Instead of more diversification always being better, diversification becomes a trade-off: it lowers the risk but at the cost of also lowering expected return. We don’t want to dilute our best ideas any more than is required to be prudent." - Bill Nygren

 - Scoot

(12-29-2021, 05:04 AM)cemanuel Wrote: Yes, diversification is not a return but a risk management strategy. Let's face it - if I were 100% confident in my stock-selecting ability and knew I'd never make a mistake I'd just pick one company and ride the heck out of it.

Unfortunately my innate fallibility has been demonstrated many times.

(12-29-2021, 10:02 AM)cemanuel Wrote: Yes, I knowingly lower my return for some peace of mind.  I don't need 50 tickers to accomplish that though, and that is where I found myself quickly headed.  I just don't have that many great ideas.  I'll more than likely end up with a bad ETF.

I was able to add more companies pretty easily when depositing more cash until I got past 30. From that point it seemed that every time I looked at getting something else, I liked what I already owned as well or better. Think I got to 34 at one point. Sitting at 29 right now. 

(12-29-2021, 10:24 AM)fenders53 Wrote:

(12-29-2021, 10:02 AM)cemanuel Wrote: Yes, I knowingly lower my return for some peace of mind.  I don't need 50 tickers to accomplish that though, and that is where I found myself quickly headed.  I just don't have that many great ideas.  I'll more than likely end up with a bad ETF.

I was able to add more companies pretty easily when depositing more cash until I got past 30. From that point it seemed that every time I looked at getting something else, I liked what I already owned as well or better. Think I got to 34 at one point. Sitting at 29 right now. 

I landed in about the same place.  When I got to well over 40 I always had two or three struggling tickers and didn't have an adequate explanation why I added them.  I'd like to end up with 20 but it will probably be 25-30.

(12-29-2021, 10:54 AM)rnsmth Wrote:

(12-29-2021, 10:24 AM)fenders53 Wrote:

(12-29-2021, 10:02 AM)cemanuel Wrote: Yes, I knowingly lower my return for some peace of mind.  I don't need 50 tickers to accomplish that though, and that is where I found myself quickly headed.  I just don't have that many great ideas.  I'll more than likely end up with a bad ETF.

I was able to add more companies pretty easily when depositing more cash until I got past 30. From that point it seemed that every time I looked at getting something else, I liked what I already owned as well or better. Think I got to 34 at one point. Sitting at 29 right now. 

I landed in about the same place.  When I got to well over 40 I always had two or three struggling tickers and didn't have an adequate explanation why I added them.  I'd like to end up with 20 but it will probably be 25-30.

I used to have 35 or so.  Down to 26, 21 companies, 1 ETF and 4 CEFs

EDIT:  make that 27, added RY this morning.

(12-29-2021, 06:41 PM)fenders53 Wrote:

(12-29-2021, 10:54 AM)rnsmth Wrote:

(12-29-2021, 10:24 AM)fenders53 Wrote:

(12-29-2021, 10:02 AM)cemanuel Wrote: Yes, I knowingly lower my return for some peace of mind.  I don't need 50 tickers to accomplish that though, and that is where I found myself quickly headed.  I just don't have that many great ideas.  I'll more than likely end up with a bad ETF.

I was able to add more companies pretty easily when depositing more cash until I got past 30. From that point it seemed that every time I looked at getting something else, I liked what I already owned as well or better. Think I got to 34 at one point. Sitting at 29 right now. 

I landed in about the same place.  When I got to well over 40 I always had two or three struggling tickers and didn't have an adequate explanation why I added them.  I'd like to end up with 20 but it will probably be 25-30.

I used to have 35 or so.  Down to 26, 21 companies, 1 ETF and 4 CEFs

EDIT:  make that 27, added RY this morning.

Enter the debate of how close one should watch their holdings?  If I enter a blue chip for the long haul, then initial research may well be sufficient for many years with an annual review.  Reading a couple hype articles on a forum isn't good enough for a larger position. When I held 45+ stocks I was always holding at least six companies with less than stellar balance sheets, less than top notch management, questionable moat etc.  Now I needed to be listening to quarterly conference calls for 15 companies.  An ETF is a better place for that part of my port.  Actually the Schwab fund I think you own accomplishes that.  It contains some stocks that need watched if held individually.  (You can make a hobby out of tracking T or MO).  The alleged "value traps".  You can skip the stress when protected by the ETF's diversity.

• Read through the quarterly ER, particularly financials
  
• Read through the earnings call transcripts
  
• If there is any unusual price movement in either direction during a trading session, or AH, see if I can figure out the reason
  
• Closely read though the company's AR and financials