The cash position in my folio is determined by the turnips "medium term" outlook, and as you can observe it goes from "fully loaded" to an extreme of typically 65% (right now it is 48%), or so. I don't concentrate the folio at all, if I did, the "accident" with AREM (my loss a full 2% of the folio) would have "destroyed" me. I have a rational core (typically ranging from 10% to as high as 50% in major bull moves) some stocks where I am "working on" double baggers" or higher, (just since the accident two of these and few of the 50% or higher class), and the rest in either swing trades (few weeks) or fast channel trading. Since the latter group is concentrated in highly volatile issues, the chance of being caught in a maelstrom are high, so exposing too much of the folio to these would not be prudent. I am "verry happy" hitting a consistent year after year 35% plus overall return and I am not after maximizing these (if I were, I would have to accept maximal losses as well, and that does not "interest" me), even though in the last two difficult years, I beat my internal hurdle by quite a lot, including in the core. Thus the relatively conservative approach. My main goal is "capital conservation".
Zeev |
