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  1. #11
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    That's where the Sharpe ratio comes into consideration - how much return do I get for every additional unit of risk I assume?

  2. #12
    ShareTrader Legend Beagle's Avatar
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    Jul 2010
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    I think you are better to hold 10-15 high conviction positions (if you can find that many) than a higher number of positions just for the sake of better diversification.
    Diversification is a free lunch, but only to the extent that you can find high conviction positions and there's little point in buying average companies just to increase diversification for the sake of diversification itself.

    Aside from that one needs to consider how much time, research and resources one can apply to closely following and managing their positions. Personally I feel it would likely drive me nutty running my business and having to follow 40-50 companies closely. How could I possibly find enough time after doing that to waste so much time on here
    Last edited by Beagle; 28-12-2017 at 11:55 AM.
    Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.
    Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine

  3. #13
    Advanced Member airedale's Avatar
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    Apr 2003
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    Above the high tide mark.
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    Was it W. Buffet who described too much of it as "diworseification"?

  4. #14
    Guru
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    Sep 2009
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    My portfolio 95 % same as last year with few buy/sells carried out
    66% in 2 stocks growth & income
    20% in 2 stocks skewed more for growth
    6% in 1 for growth & income,low volatility,ready to sell if need the dosh
    Rest 3 dibs & dabs dipping my toe in,low conviction
    Happy with 30 % ROI this year with low volatility.
    Not expecting too much in the coming year if interest rates increase very much

  5. #15
    Senior Member
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    Sep 2016
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    I currently have 16 stocks. 15 NZX and 1 ASX. I only buy companies I know pretty well which is the reason I've decided to stick with the NZX for now.

    Personally I find the number works pretty well - I try to stick between 10 to 20 stocks dependant on the opportunities. Within this, half of the companies I consider have good growth opportunities (and are my largest holdings). The others are strong defensive stocks or dividend payers

  6. #16
    Senior Member
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    Dec 2014
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    Out of interest, do you guys hold any managed funds in the context of your above stocks?

    I currently hold under ten stocks directly, but total funds invested in shares is split 60% index 40% individual stocks, hence happy to concentrate that 40% into high conviction positions.

    Also have NZ property etc

  7. #17
    ShareTrader Legend Beagle's Avatar
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    Jul 2010
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    Auckland
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    Quote Originally Posted by JeremyALD View Post
    I currently have 16 stocks. 15 NZX and 1 ASX. I only buy companies I know pretty well which is the reason I've decided to stick with the NZX for now.

    Personally I find the number works pretty well - I try to stick between 10 to 20 stocks dependant on the opportunities. Within this, half of the companies I consider have good growth opportunities (and are my largest holdings). The others are strong defensive stocks or dividend payers
    I like the cut of your jib mate and pretty much use the same strategy although finding value / high conviction positions is definitely getting harder after such a strong year.
    Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.
    Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine

  8. #18
    Legend shasta's Avatar
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    Sep 2004
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    Wellington
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    I try to stick to 5 investment stocks, unless there's a compelling reason to add in an extra, ie stocks in play, spin offs etc which are basically short term trades.

    Makes researching easier keeping a close eye on just a few companies. I'm happy with the concentrated portfolio approach and not adverse to a bit of risk to achieve a higher return.

  9. #19
    Member
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    Apr 2015
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    Napier
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    Holding 7 NZ stocks at this time ATM HLG IFT MPG OCA SCL & THL. At times will buy in MEL & SPK but only hold short term on these 2.
    Held AIR for a while but sold out at just over $3,20. May buy back into AIR later.

  10. #20
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    Mar 2017
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    I hold 9 U.S. stocks (mostly tech), 7 NZ stocks and 7 passive ETFs.

    I plan to increase my passive ETFs to about 50% of my holdings over the next year and keep the 16 stocks to play around with.

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