My best performing investment this year is Fever-Tree. The kicker is that it makes up less that 2% of my portfolio.
Why did I not buy more?
When I invest in a company I like to do it in 3 tranches. I set a buy price along with 2 further buy points. My entry point for £FEVR was £8.50. My second purchase price would have been £6. The share price rebounded so it never reached those levels.
This approach works for me as;
-I don’t feel like I missed out on a company I hold conviction about
-it gives me the chance to invest further if the share price drops
-I don’t have to wait until the entry point is ‘perfect’ as I’ll certainly price companies incorrectly
This allows me to build positions in companies between 5-10% of my portfolio.
It’s an approach which has worked for me since 2021 that I wanted to share.