diversified share portfolios

[huxley]

Just playing devils advocate What if the companies with global exposure, that are listed on Australian and New Zealand stock markets, underperform in their respective sectors (or are out completed by their contemporaries listed overseas)?

Are we not such a tiny part of the global economy?


Carl Sagan
"...Our posturings, our imagined self-importance, the delusion that we have some privileged position in the Universe, are challenged by this point of pale light. Our planet is a lonely speck in the great enveloping cosmic dark. In our obscurity, in all this vastness, there is no hint that help will come from elsewhere to save us from ourselves."

[percy]

Just playing devils advocate What if the companies with global exposure, that are listed on Australian and New Zealand stock markets, underperform in their respective sectors (or are out completed by their contemporaries listed overseas)?

Are we not such a tiny part of the global economy?


Carl Sagan
"...Our posturings, our imagined self-importance, the delusion that we have some privileged position in the Universe, are challenged by this point of pale light. Our planet is a lonely speck in the great enveloping cosmic dark. In our obscurity, in all this vastness, there is no hint that help will come from elsewhere to save us from ourselves."

The answer may be to "invest"??????? in some SAS on the ASX.

ps.I do not hold.
pps I doubt I will ever hold.

[Snoopy]

Just playing devils advocate What if the companies with global exposure, that are listed on Australian and New Zealand stock markets, underperform in their respective sectors (or are out completed by their contemporaries listed overseas)?

Are we not such a tiny part of the global economy?

Point 1/ I don't think you can judge your investment performance entirely on retrospective hindsight. In the beginning you can make your best guess at what an investment might do. For that you have to make the best use of the information you have at the time you started your investment. After your investment has taken place, markets will evolve and 'black swan' events might happen. The best protection against these unpredictable things is to look for an investment with the ingredient of resilience.

Point 2/ If you are investing in a global industry, and you do this by investing in an NZX listed company, that doesn't mean you can't benchmark your investment against overseas competitors. IMO you should do exactly this, otherwise how can you judge whether your NZX investment target is truly competitive to start with? If the company you invest in is competitive, there is no reason to suspect that you will do anything other than outperform over time.

Point 3/ Don't beat yourself up if you find, with hindsight, you have not invested in the best performing company in your chosen investment sector. The chances are that if you look globally, you will find an investment in the same market sector that has done better than yours over the snapshot timeframe you chose. But an 'Above average' performance over the same time frame will do.

SNOOPY

[silu]

After starting from nearly Zero in 2013 after a not so successful business adventure my portfolio has added today, albeit briefly, another digit to the portfolio. Overall I'm up over 45% since 2013 with most of the dividends re-invested.

Although my strategy might not be of much use to others I have implemented some basic rules that have served me well:

50% in Blue Chip
30% in medium to large growth companies
20% in start-ups and high-risk stocks

No stock in the bottom two shall be over 5% in cost of my total portfolio size
Be more prepared to take profits on the bottom two
Don't average down unless I am certain the market has reacted irrationally (i.e. Trump slump)

Fwiw NZX accounts for 43%, ASX 50% and USA 7%.

I know this is very basic but I'm chuffed to bits to have reached this little milestone and I just wanted to tell somebody who doesn't know me personally because no one likes a bragtard

[iceman]

After starting from nearly Zero in 2013 after a not so successful business adventure my portfolio has added today, albeit briefly, another digit to the portfolio. Overall I'm up over 45% since 2013 with most of the dividends re-invested.

Although my strategy might not be of much use to others I have implemented some basic rules that have served me well:

50% in Blue Chip
30% in medium to large growth companies
20% in start-ups and high-risk stocks

No stock in the bottom two shall be over 5% in cost of my total portfolio size
Be more prepared to take profits on the bottom two
Don't average down unless I am certain the market has reacted irrationally (i.e. Trump slump)

Fwiw NZX accounts for 43%, ASX 50% and USA 7%.

I know this is very basic but I'm chuffed to bits to have reached this little milestone and I just wanted to tell somebody who doesn't know me personally because no one likes a bragtard

Well done silu. Doesn't really matter how we do it as long as we reach a goal and a result that we are personally happy with. Do you mind me asking how many stocks you have in your portfolio ?

[kiora]

After starting from nearly Zero in 2013 after a not so successful business adventure my portfolio has added today, albeit briefly, another digit to the portfolio. Overall I'm up over 45% since 2013 with most of the dividends re-invested.

Although my strategy might not be of much use to others I have implemented some basic rules that have served me well:

50% in Blue Chip
30% in medium to large growth companies
20% in start-ups and high-risk stocks

No stock in the bottom two shall be over 5% in cost of my total portfolio size
Be more prepared to take profits on the bottom two
Don't average down unless I am certain the market has reacted irrationally (i.e. Trump slump)

Fwiw NZX accounts for 43%, ASX 50% and USA 7%.

I know this is very basic but I'm chuffed to bits to have reached this little milestone and I just wanted to tell somebody who doesn't know me personally because no one likes a bragtard

Congrats SILU. Better to brag on how well the portfolio has done than look for sympathy on how crap ones investment decisions have been

[silu]

Thanks guys. fwiw I hold
10 stocks on NZX
17 stocks on ASX (as most of my high risk stocks are there)
4 stocks in the US

Biggest winners:
ATM.NZX +378%
AJX.ASX +252%
MEL.NZX +98%

Biggest Losers:
SKO.NZX -66%
EPD.ASX -33%

One thing I forgot to mention - the moment I usually get a sniff that something is not right I try to sell immediately like SNK (bought at 11c sold at 9.5c) or PEB (bought at $1.53 sold at $1.28) or NWT.ASX (bought at 43c sold at 30c - now delisted). I have still faith that SKO comes right that's why I continue to hold.

[couta1]

Going forward I will hold a maximum of four stocks only, currently my portfolio is made up of only two (SPK&RYM) I don't see the need to diversify more than that, it all comes down to being confident in the companies you choose and what your risk tolerance is. Also I only invest in NZ companies.

[iceman]

Going forward I will hold a maximum of four stocks only, currently my portfolio is made up of only two (SPK&RYM) I don't see the need to diversify more than that, it all comes down to being confident in the companies you choose and what your risk tolerance is. Also I only invest in NZ companies.

And I thought I was "bad" with normally only 5-8 in my portfolio :-)

[macduffy]

Going forward I will hold a maximum of four stocks only, currently my portfolio is made up of only two (SPK&RYM) I don't see the need to diversify more than that, it all comes down to being confident in the companies you choose and what your risk tolerance is. Also I only invest in NZ companies.

When I was very, very young I risked, and lost, a big part of my meagre wealth in an Australian company called Reid Murray. These days I over-compensate for that by over-diversifying my portfolio. But I sleep a lot better!