04-27-2014, 06:47 PM
I don't really have any hard and fast rules when it comes to weighting and diversification in my portfolio. I've still got a long way to go until retirement, and perhaps as I get closer I'll be more careful about keeping positions tame, but for now, I am comfortable putting my money with my best ideas. Right now, for example, let's say that JNJ is 12 percent of my portfolio. But with luck, in 20 years my portfolio will be MUCH larger than it is now. And perhaps by then I'll have twice as much JNJ as I do now, but it will only account for 6 percent of my portfolio. I don't see much sense in buying lower-conviction stocks to maintain a certain arbitrary weightings when my entire portfolio will be much larger (I hope!) in the future.