It might surprise many to learn I own over 100+ stocks.

Conventional wisdom seems to lean highly concentrated. In my experience, concentration is a double-edged sword.

Here's a few reasons why I own a lot of stocks:

* Position sizing reduces my single stock risk/ sleep at night factor
* Skin-in-game stakes give me access to upside in ideas that wouldn't make the cut in a highly-concentrated portfolio.
* I can let my winners win longer.
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Oliver's avatar
@odysseusNovember 2
I have a portfolio of 30(ish) stocks but they are across multiple markets split into groups of 10

10 NYSE
10 ASX
10 NZX (I am based in New Zealand)

My rationale for operating in those three markets is because they span multiple time zones the market is ‘open’ for me for an extended period and I’m a stock geek and can’t stop reading and analysing stocks.

I did dabble into crypto because that market is open 24/7 but my $50 experiment quickly turned in $25 so I’ve left crypto for the time being.
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Todd Campbell's avatar
@ebcapitalNovember 2
Author
There's way more than 5 or 10 stocks worth owning. Nice job sprinkling your money around into different baskets!
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Oliver's avatar
@odysseusNovember 3
@ebcapital that’s what my S&P 100, NZX20 and Moonshots funds are for to give me more exposure.

I also don’t have a huge amount of capital to invest which has led to a concentration of holdings.

When I can quit the day job then I’ll be able to increase my portfolio numbers as I’ll have heaps of time to devote to it, sadly that day seems very far away.
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delos's avatar
@diggityNovember 2
as much as i love the idea of yolo-ing my life savings into a trade, keeping my position sizes limited has been a good call. protect yourself from yourself 😂
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Todd Campbell's avatar
@ebcapitalNovember 3
Author
Exactly. Position sizing is key to risk mgmt.
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Eric Pelnik's avatar
thoughts on the math re anything over 20 stocks doesn't do much more to de-risk you? https://www.investopedia.com/investing/dangers-over-diversifying-your-portfolio/
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Todd Campbell's avatar
@ebcapitalNovember 3
Author
Yes. A portfolio of 30+ insulates against single stock risk. In my view, there are way more than 20-30 great co's and setups worth owning, though. My goal? Beat the market by owning the best stocks. If you own 20 stinky stocks, you'll lag despite being insulated against single stock risk. In short, once I get beyond the 30 it becomes more about owning great co's than benefits of diversification.
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Joey Hirendernath's avatar
How do you keep track of 100 stocks?
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Todd Campbell's avatar
@ebcapitalNovember 3
Author
I've been working full-time in this industry since the late 90s, so I can spend all day on stocks. That helps! Also, if you do the DD up front to craft a solid thesis/understand the catalyst, then ongoing DD isn't too tough. It's mostly checking transcripts/filings to make sure your thesis isn't busted.
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