Dear Hitesh bhai thanks for the wisdom . I have a few questions on point you mentioned
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With regards to concentration of bets on stocks where you have conviction and growth looks convincing. Whats is a good allocation at one point 7 % was good for me today i feel going north of 10 % upto 20 % . I know it depends on person to person but what is a good allocation considering risk of blow up is low and portfolio can grow @ high Cagr with mediocre risk
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In a concentrated portfolio of say 10 stocks how many should be high allocation bets ( assume we have 5 high convincing idea )
a) 3 stock 20 % allocation each rest 5 % each
b) 3 stock with 10 % allocation rest with 5-7 %
c) 5 stock with 10 % each balance 5 -7 %
I intend to follow option a) wanted to understand your view and also which one of above looks good or any staryegy that you follow which works for you.
Concentration does give excitement of higher double digit growth in portfolio but also comes with risk of portfolio moving in either direction.
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