SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Value Investing
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Paul Senior who wrote (3651)3/26/1998 11:10:00 AM
From: Michael Burry  Read Replies (2) of 78530
 
Paul,

It's not hard to see what the problem was. I ID'd my own problem late
in 1997: it all comes back to portfolio concentration and the antsy feelings that come with owning very few stocks. The other issue was that there were constant cash withdrawals from the account - 40% of
that account went out the door last year. Now I'm
dealing with money that isn't needed for at least 10 years.

When I only had 4-6 stocks, it was hard to sit on a JBM
and HYDEA as 1/3 of the portfolio. Too illiquid and
manipulated by MM's. It's easier to be patient when the bid/ask on
something like HYDEA doesn't eat up 2-3% of your portfolio each day.
So far in 98, I've had just two stock sales, but I still have >7.5%
positions in each, so I basically own everything I've bought this
year.And my portfolio swings haven't been more than 1% in one day on
the downside all year. Never more than 2% even on the upside.

This peace of mind, and in my opinion more disciplined and successful
investing, has come from a 10 stock portfolio. In my reading,
I rarely see anyone recommend a 10-12 stock portfolio, though it
eliminates about 90% of the non-market risk. Going to 16 stocks
only takes you to 93% and going to hundreds of stocks only gets
you to a few more percentage points.

Still can't explain why I didn't buy JBM when I saw it at 2 5/8
in January though...

Mike
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News