If your portfolio is made up of five names, you are violating one of the fundamental laws of investing. And, no matter how much analysis you have done, the market, and likely many other people, know more about the company than you do. that doesn’t make you wrong, but it puts you at a serious disadvantage. You best have “Stop Losses” on all your positions.
Posted by: daveinbedstuy at September 16, 2009 2:35 PM
CG_ups, maybe I’m lucky so far but the 5 holdings max approach has allowed me to make $$$, avoided completely the mkt pull back in 08, and am UP again this yr. I find it’s a ton easier to sell at a loss when I know a position well and know that it wont do well. most retail investors get killed because they hesitate too long before getting rid of losers in portf – something I learned the hard & expensive way back in 01 internet bubble
If your portfolio is made up of five names, you are violating one of the fundamental laws of investing. And, no matter how much analysis you have done, the market, and likely many other people, know more about the company than you do. that doesn’t make you wrong, but it puts you at a serious disadvantage. You best have “Stop Losses” on all your positions.
I guess that means we’re in a pickle.
your money, whatever you’re comfortable with. just commenting that 5 names is fairly concentrated risk.
CH just told bxgrl: “You float with Arkady in a bitter brine.”
If your portfolio is made up of five names, you are violating one of the fundamental laws of investing. And, no matter how much analysis you have done, the market, and likely many other people, know more about the company than you do. that doesn’t make you wrong, but it puts you at a serious disadvantage. You best have “Stop Losses” on all your positions.
Posted by: daveinbedstuy at September 16, 2009 2:35 PM
DIBS, then consider me LUCKY.
ROFL. I’ve actually never heard that, dave.
CG_ups, maybe I’m lucky so far but the 5 holdings max approach has allowed me to make $$$, avoided completely the mkt pull back in 08, and am UP again this yr. I find it’s a ton easier to sell at a loss when I know a position well and know that it wont do well. most retail investors get killed because they hesitate too long before getting rid of losers in portf – something I learned the hard & expensive way back in 01 internet bubble
CGar, I’m surprised you didn’t use the British (and drag) version of that…”Handbags at twenty paces.”
If your portfolio is made up of five names, you are violating one of the fundamental laws of investing. And, no matter how much analysis you have done, the market, and likely many other people, know more about the company than you do. that doesn’t make you wrong, but it puts you at a serious disadvantage. You best have “Stop Losses” on all your positions.
Gee, Denton, that’s terrif. I’m still down about a fifth.