8th yr of L's model
Steve,
Another problem we will face is that with several successful AIM stocks, we could get to a point where the breadth of the portfolio gets more bothersome than the size of any one issue in the portfolio. Each of us will have a different metric for what that is, 10 stocks, 20 stocks, 30 stocks, at some point, we will refuse to add a single extra issue. Then, we'll have to suck in our guts and make those $30-$40-$50,000 buys/sells. That will be LESS painful than adding another issue to track. This is where our mindset changes. We'll get to this size of trade so gradually, over such a long period of time, that we won't be all that uncomfortable with the trade size.
Tom's VTSS holding will become such a beasty in a few more semi cycles. He's held it quite a long time, its done absolutely wonderfully as an AIM stock for him, and there's little reason to believe that it won't continue in much the same vein for the next few years. Unless he takes some drastic action to reduce the size of the holding, he'll get to the $25,000 to $30,000 per trade of VTSS perhaps as early as 2002. So, Tom, are you adhering to the 5% rule (or fairly close to it) with your VTSS holding?
Robert |
