Extremely well defined approach.
Also, I like the fact that, your allocation is same for all stocks with only 2 levels i.e. 4% and 2%. This gives arise to Equal Weight Portfolio which I believe is more stable and may give better returns. Most of us have tendency to allocate more weight to high conviction, highly undervalued stocks but often end up generating inferior returns as Mr. Market does not move the stocks up or down based on our convictions. Mr. Market does opposite things many time.
I am sure that, you might have thought about increasing allocation levels to 5% as well.
I will like to know your rationale behind only 4% weight. May be it is due to high no. of stocks which you like to own.
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