William O Neil suggested taking concentrated bets as you suggested and aim for 30-40% profit targets. Actually this was one of the many things he advocated. But coming to this specific aspect, I use it frequently. If I don’t have an idea with much higher returns potential at any point of time ( there are often many ideas, but clarity related to the business in the initial phase of investment is not there and story often unfolds a quarter or two down the line) I often go for ideas where my techno funda picture provides visibility of around 30-40% returns. In these cases I often allocate 20-25% of my capital if I am very sure about the business, and the picture is clear for expected returns on charts and in fundamentals. If on a 20% allocation, I expect around 30% returns within around 3 to 4 months, it provides me with 6% overall portfolio returns within 3-4 months from a single position. That’s how I think about it.
Allocation is one of the most understated aspect of investment. After a point, stock selection is often easy, but allocation is sometimes the key to generating higher returns at a portfolio level. Betting hard on sure shot, high conviction ideas can do wonders for the portfolio.
Regarding alternative to Investors business daily, I don’t know of any such similar option in Indian markets. Maybe someone who knows can pitch in.
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