05-29-2015, 08:37 PM
I have certain financial statement characteristics that I look for. To get a good result, my portfolio needs to be a representative sample of companies with certain financial statement characteristics. A proper sample size is at least 30. Another thing to consider is that I don't want my beginning investment in a company to be more than 3% of the total portfolio. So, I landed at 33 companies, however as time slipped into the future, there were bargains along the way and I think I'm up to 59 companies. I should mention that I have very sophisticated portfolio management software with huge databases helping me. In addition, I have very low turnover... Most of the sells in my port were from being acquired by another company.