(05-16-2024, 07:30 AM)ken-do-nim Wrote:(05-15-2024, 04:10 PM)rayray Wrote: once i get to 5k, then the goal is 15k but sometimes it takes me a while to get there or i think the stock might not do well for a while and i take my time or i'm not confident i'll hold the stock--like DIS or SBUX
say i have the position up to 15k and then it grows to 20 to 25k--theoretically the plan is to trim and invest that 5 to 10k into another stock or stocks and get that position back to 15k
Hmmm... the problem with this algorithm is that it requires you to continually seek out new positions to invest in, and eventually you may dilute the quality of your portfolio. I've always thought that as my portfolio grows, my "acceptable position size" would grow along with it so I could limit my holdings to ~ 30 or so.
It all depends what one chooses to do, to find "new" positions or to "add" to growing positions. I tend to add to growing positions, or to positions that I feel might eventually grow--the latter is a much harder investment strategy because it can cause years of pain, fatique and a sense of defeat.
I currently have 42 positions with about 3 to 5 that I would have no issue selling out of but don't for various reasons. If the portfolio grows I'd have no issue having about 100 positions, with todays info and technology available to individual investors I don't think 100 individual equities would be that much of a bear to handle. I know people who have hundreds of individual equities (200-300) but their portfolios are well over 3 million dollars and they use CFP's. I do have one friend worth about 2 mil with over 300 positions, which I think is ridiculous, it's too much work imho--he does manage his own portfolio.
I also like having at minimum of 15k invested in any one equity, anything less doesn't move the needle imho unless it skyrockets for some reason.
It's hard to say what I'll do in the future, sometimes I feel like I'll just move towards ETF's and call it a day and sometimes I think I might get a CFP or just keep doing what I'm doing--it's all up in the air.
If I looked at my performance and lagged the market, I'd wrap it up and accept that I'm not doing myself or loved ones any favors and go in another direction. I'd probably lean towards a series of ETF's, maybe some MF's.
There was one poster here several years ago--he was the original thread creator for "What I Am Buying Today" thread, I can't remember what his handle was?? He was a good poster and investor imho, he even had a blog with all his holdings listed with a 1000 dollar club, stocks that gave him at least 1000 dollars a year in dividends. For a fairly young guy he had a decent portfolio worth quite a bit of dollars--then one day out of the blue he posted about contemplating his strategy and said he couldn't beat the market and decided to sell out, he bought if I remember correctly 4 to 5 maybe 6 ETF's and called it a day, said he was going to (I think) retire and enjoy life.
That was it, he never posted again and his blog was erased--just like that.
He had a good blog, and was a good poster.