02-04-2022, 08:19 AM
Figure of speech of course and I don't think Scoot is implying one should own only four equities. Our personal risk tolerance is a starting point. If you spread your port across 10 stocks, one extreme failure or success is meaningful. Stocks do 10X or go BK. At this time I choose to own about 20 tickers. I have ETFs as well so my risk is mitigated some. My chance of significantly over or underperforming the market is small.
Having said that. FB is well under 2% of my port. Responsible for over 30% of my port decline yesterday after a rough market day. Record setting loss of market Cap for one day. I only own a few speculative stocks and they hit me several weeks last month. I clearly don't have 20 shiny quarters, at least in the short term.
Having said that. FB is well under 2% of my port. Responsible for over 30% of my port decline yesterday after a rough market day. Record setting loss of market Cap for one day. I only own a few speculative stocks and they hit me several weeks last month. I clearly don't have 20 shiny quarters, at least in the short term.