Paul,
Thanks for your input. Right now my portfolio is concentrated in 4 stocks, blend in a bit of WHX. I recently sold two others, because I believed both to be currently overvalued. My portfolio is concentrated and possibly over concentrated. It will eventually get back to 5-10 different securities over the next year.
My personal style usually favors one to three stocks heavily. I invest only for the long term, and don't need the money for many years. As far as what level of diversification is best, I don't have a final answer. My current one is how I have my portfolio, and how plan to evolve it over the next year.
Where did you learn to do what you are doing?
It is a style that I like. In Strategy (Game or Military), all significant gains are made by focusing or concentrating your strength in the most critical areas. The famous Warren Buffet said ".he would attempt to purchase a few of the very best businesses at reasonable prices. He would not be interested, he said, in purchasing shares in each business in town." This is from Berkshire's 1991 annual report.
Now, I'm not exactly sure how to define `the very best businesses'. That is why I'm following the Value Investing Thread, to broaden my views. The only place I seem to find `reasonable prices' is primarily in the mid/small/micro cap area. I currently follow 10-15 companies in detail, and keep an eye on another 10 or so other prospects. I would like to know that other people have tried and either with success or failure. My personal interest in aggressive long-term(5+years) growth.
Please feel free to comment - Christopher |
