For my stock picking portfolio, I strive to maintain a portfolio comprising approximately 15 companies possessing strong moats across diverse industries.
Good article. I tend towards 30 postions, but my goal is to get to a few (like munger) that dominate the portfolio because they have compounded so much. Having 30 positions, many of which are small trackers allows me to cast a wide enough net so I have higher odds of capturing the rare compounders that I need to succeed. Also keen to avoid watering my weeds and cutting to my flowers as was my instinct in the past. Started to instead add to growing business that outperform and up since my first buy with money from the laggards that didn't work. Will it work, I'll let you know in 20 years.
Good article. I tend towards 30 postions, but my goal is to get to a few (like munger) that dominate the portfolio because they have compounded so much. Having 30 positions, many of which are small trackers allows me to cast a wide enough net so I have higher odds of capturing the rare compounders that I need to succeed. Also keen to avoid watering my weeds and cutting to my flowers as was my instinct in the past. Started to instead add to growing business that outperform and up since my first buy with money from the laggards that didn't work. Will it work, I'll let you know in 20 years.