03-31-2015, 11:05 AM
Hi everyone, new to the forum and DGI, so go easy on me!
I'm interested to know opinions on the number of stocks to hold in a portfolio and how this relates to their strategy? I understand with DG Investing a Portfolio often includes 20+stocks and this is usually due to a number of reasons such as if one Company cancels or reduces it's Dividend this would have a lower impact on the portfolio. Also it is likely to reduce volatility; number of years until retirement etc so can see a lot of advantages.
From reading about Buffett's strategy (not just Buffett) it seems that he is an advocate of Focused investing and that holding less stocks allows an investor to have a better understanding of the company and that he believes that why would you put money into your 20th best idea and not your 1st? I know it's Buffett we're talking about and there are few of him about.
I guess both aren't mutually exclusive, really interested to hear thoughts on this?
I'm interested to know opinions on the number of stocks to hold in a portfolio and how this relates to their strategy? I understand with DG Investing a Portfolio often includes 20+stocks and this is usually due to a number of reasons such as if one Company cancels or reduces it's Dividend this would have a lower impact on the portfolio. Also it is likely to reduce volatility; number of years until retirement etc so can see a lot of advantages.
From reading about Buffett's strategy (not just Buffett) it seems that he is an advocate of Focused investing and that holding less stocks allows an investor to have a better understanding of the company and that he believes that why would you put money into your 20th best idea and not your 1st? I know it's Buffett we're talking about and there are few of him about.
I guess both aren't mutually exclusive, really interested to hear thoughts on this?