How many shares and sectors do you think is enough to achieve diversification for an HYP?

[tjh290633]

Perhaps the question is better phrased in relation to sectors. I use my own sector definitions:

Banks & Finance
Building & Materials
Engineering
Food
Leisure
Insurance
Media
Mining
Oil/Gas
Pharmaceutical
Property
Retail
Support Services
Telecoms
Tobacco
Utilities

which you will note is 15 exactly.

I demand a recount! ;-)

Gengulphus

I blame my spreadsheet. I even have a cell with counta() in it. Obviously a subtraction error.

TJH

[torata]

I have taken to topping up such rump holdings to a level where they can be sold, sometimes with beneficial results, sometimes not.
TJH

Even assuming cheap dealing days to buy, it doesn't sound logical to me, unless there's a reason I've missed.
I've gifted a share after dot.com crash that was worth less than the dealing fee.

torata

[tjh290633]

I have taken to topping up such rump holdings to a level where they can be sold, sometimes with beneficial results, sometimes not.
TJH

Even assuming cheap dealing days to buy, it doesn't sound logical to me, unless there's a reason I've missed.
I've gifted a share after dot.com crash that was worth less than the dealing fee.

torata

I have gifted shares where the holding was very low. However, when I have got shares through demergers and the quantity is de minimis, I have usually added to them to be at the lower end of what to me makes a sensible holding. If they do well, then they get brought up to median weight. If not they go. The recent examples are Indivior, spun out of Reckitt Benckiser at the end of 2014, which was going to pay dividends. The price at demerger was 120p, and I added 500% more at 233p to make a sensible holding. They paid two dividends and then stopped, and by 2018 I decided to get rid of them at 372p, giving me an IRR of 21%.

The other is South32, demerged from BHP in 2015 at 117p, which I brought up to a similar level as INDV at 102p. It started paying dividends and I have added more on 4 occasions, all at higher prices (188p, 186p, 156p and 136p). The dividend was reduced at the last full year report, and prices have been subdued of late, so the IRR is slightly negative at the moment, about -3%, reflecting the purchases at higher prices. Currently the yield is about 3.3%, so just below my median value of 3.4%. I am happy to continue holding.

TJH