Performance is not consistent. it is CAGR which will keep changing depending upon the mood of the market. I look at the profit growth of the company to measure my portfolio value rather than stock prices.
Buffet says you should not look at price first (Marketcap) as it distorts your mind but unfortunately, if you do screen that is the first thing that comes to you. The best option is if u heard about good business you pick up annual reports then try to value the company and then go to the screen to check.
Sizing: It has evolved I had 10 %, 5 %, and then 1 % bucket. But I generally stop at 15 %. I believe you should do at least 3 to 4 % because if the stock price climbs with my framework you will get stuck with a 1 % allocation. For the first five years don’t go over 3 % as you can make mistakes, learn, and become concentrated. My largest muli-baggers were all small allocations.
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