Apologies for late reply. At the time of post, I was holding somewhere around 50 stocks in two different portfolio and now gradually reduced to 10 or max of 12 at any given time on both of my portfolio. My goal is to reduce this to max of 6 to 8 at any given time. At the moment I am leaning towards mutual fund like Midcap, Large to midcap.
Also another strategy I am following is once the specifc stock reaches 120% of the original value, I sell 45% of the portfolio to get my original value. I will leave the stock forever unless it is making major correction. Not sure whether I will continue this strategy in the future.
I am ardent follower of Buffet and I am very surprised to see number of stocks greater or equal to 3% portfolio is only 8. Since Berkshire is too big, they need to fill the bucket some how.
When Warren lectures at business schools, he says, “I could improve your ultimate financial welfare by giving you a ticket with only 20 slots in it so that you had 20 punches—representing all the investments that you got to make in a lifetime. And once you’d punched through the card, you couldn’t make any more investments at all.”
He says, “Under those rules, you’d really think carefully about what you did and you’d be forced to load up on what you’d really thought about. So you’d do so much better.”
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