Hello you wonderful and very intelligent people. I do hope you are having a successful week and your investment portfolio is flourishing.
I have done okay with my portfolios, sometimes stocks have done around 10% a year, a few lost maybe 15%. Then there is one or two that have gained around 25% - 30%. I kindly wanted to ask please when structuring my portfolio, if a stock, after a full amount of research, is increasing cash flows, has low debt and meets a good criteria, could i consider putting 40% of my portfolio into that stock please? I know there is more risk, but i just dont seem to be getting very far with my portfolio. I feel its too evenly balanced, i usually put about 20% evenly into stocks in my portfolio. I know Warren Buffett when he initially bought See Candies this was for £25 million, which was out of character for him, but helped him reach where he is today. If anyone kindly had any advice on this i would be forever grateful and thankful, it would mean the world to me.
Wishing you a wonderful day and hope you continue to achieve all your goals and dreams. Sending you lots of good wishes. Take care.
Intelligent people know how difficult it is to beat the market long term, everything you are stating here is highlighting why that is the case. For example when a portfolio is not performing then people give up on it easily which is just human nature but don’t give it time to prove itself. (it might beat the market in a 10 year time frame - who knows if you never gave it a chance)
The true way to beat the market is probably to be less diversified but this comes with big risk and many will fail with this approach and few will succeed. (hence why I said it’s so difficult)
maybe give your portfolio time to perform, leave it at least 5 years and see how it performs before re-shuffling and giving up on it. Are your goals for long term gain? they should be rather than short term which is a lottery!
it’s all about time in the market and not timing the market. i once read an article on Hargreaves where it stated that the best performing portfolios are dormant forgotten accounts…i wonder why
Owning stocks should be no difference to owning a farm, you wouldn’t go checking and counting how many maize has grown or died on a regular basis
