OT: Madharry. If I had one stock I preferred over all others, I'd be plenty scared.
Largest buy position amount would be maybe 5% with that position likely lagged into over time. As regards holding vs. buying, in some smaller portfolios, I've been willing to hold all of a position even as that one position has increased to maybe about 14% of the portfolio's value. At some point though, I will scare myself into believing that it's prudent to trim and move on. (Which differs from the Buffett, et. al. approach which says - if you've picked the right stock, why sell? Or -- even if the stock is moderately overvalued, if it's a good moat stock with good future, again - such stocks are hard to find, and so once more - why sell?)
Perhaps it's a matter of purpose and goals. I am not looking for one stock upon which to place my future - I don't need a do or die bet. It's not necessary for me to find the one stock, the profit from which will enable a lifestyle change for me. I see investing as a long term process, so I don't feel I need to make a big bet on any one particular stock. Plus, given that I am wrong a lot, especially where I initially believed I was so right, I am leery of big bets.
Jmo and my nature. Others will differ.
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How about yourself? |
