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.
Technology Stocks : HAUP - Hauppauge Digital
HAUP 0.0139-10.6%Oct 21 2:34 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: peter michaelson who wrote (594)5/23/1999 3:08:00 PM
From: westes  Read Replies (1) of 1149
 
Generally my rule of thumb is to never invest more than 5% of my money in any one holding. But there is a more interesting question here: if some investment grows to be more than 5%, does portfolio theory say you should divest out of that holding as it rises?

It seems to me that is a mistake. In most portfolios that end up making really good money, you have maybe eight to twenty holding, and maybe two or three of those become rocket ships that make 10x your money. In other words, your return is really concentrated a very small number of superb performers. It's best to let those run, even if they become more than 5%.
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