TheMotorcycleBoy's portfolio trilemma

[TheMotorcycleBoy]

Thales (French). They make the NLAW (they own Shorts) and the Starstreak SAM. I bought some Thales shares shortly after war broke out, up 38% since then.

Upon the invasion I bought several Ag names: Mosaic, Nutrien, Corteva, ADM and Agro, and they are all up 20% to 50% in a couple of months.

War is opportunity.

Apologies guys, I know this is very off-topic. But roughly how many individual holdings do you all hold in your portfolios?

I'm curious, because after 4 years of investing, I'm wondering whether or not I'm at a junction in my path, since the World has moved (so it seems) from a time of low inflation and relative peace to one of high inflation and Cold War II. It's making me weigh up the following thoughts:

1. Stay with a concentrated equity portfolio and attempt to stay "up to date" on each holding. This is roughly what I'm doing now, but it's getting tougher as I add more holdings and continue with the day job.
2. Diversify more, and accept that less overall knowledge of each holding is needed since each holding constitutes a smaller percentage.
3. Give up, and buy the World Equity Index tracker.

Happy to have this enquiry moved off onto another board.

Would appreciate hearing more about holding numbers, and any other views,

Thanks Matt,

Moderator Message:
Split off from this thread at Matt's request. - Chris

[SalvorHardin]

Apologies guys, I know this is very off-topic. But roughly how many individual holdings do you all hold in your portfolios?

I'm curious, because after 4 years of investing, I'm wondering whether or not I'm at a junction in my path, since the World has moved (so it seems) from a time of low inflation and relative peace to one of high inflation and Cold War II. It's making me weigh up the following thoughts:

1. Stay with a concentrated equity portfolio and attempt to stay "up to date" on each holding. This is roughly what I'm doing now, but it's getting tougher as I add more holdings and continue with the day job.
2. Diversify more, and accept that less overall knowledge of each holding is needed since each holding constitutes a smaller percentage.
3. Give up, and buy the World Equity Index tracker

I currently have 33 holdings, 11 of which are Investment Trusts which don't require much monitoring. I spent something like 20 hours deciding which investmwnt trusts to buy.

My 10 largest holdings make up 55% of my portfolio. Most have been held for many years, so I have accumulated a lot of knowledge about each one, vastly more than say my 30th largest holding.

Shortly before I retired (in 2003), I had 12 holdings. Since I was going to live off my portfolio I added 8 Investment trusts (before retiring) to provide a lot of diversification.

Being retired makes it a lot easier to keep any eye on my shareholdings than when I was working. Also having bought my first shares in 1981, and having worked in finance for 14 years, I have a lot of experience to draw upon. But I am reluctant to go above 35 holdings nowadays as this will dilute my focus.

The decision to buy Thales and AeroVironment didn't take long. I owned AeroVironment shares for a few years and sold them 10 years ago, so it didn't take me long to get up to speed regarding the company. A couple of friends used to work for one of Thales subsidiaries and they keep reasonably up to date with what's going on.

Also they aren't big holdings (combined just under 1% of my portfolio, they are my two smallest holdings) so I didn't spend a huge amount of time before buying - the decision was mostly gut instinct. I spent about ten times as much time deciding to buy Farmland Partners (admittedly a much larger holding).

I should add that investing is a hobby for me and always will be. Also had I been investing in trackers whilst working, I'd probably still be working (my big gains were in small oil explorers in the early 2000s). So I'm biased in favour of stockpicking, which isn't for everyone.

[Lootman]

I currently have 33 holdings, 11 of which are Investment Trusts which don't require much monitoring. I spent something like 20 hours deciding which investment trusts to buy.

My 10 largest holdings make up 55% of my portfolio. Most have been held for many years, so I have accumulated a lot of knowledge about each one, vastly more than say my 30th largest holding.

I should add that investing is a hobby for me and always will be. Also had I been investing in trackers whilst working, I'd probably still be working (my big gains were in small oil explorers in the early 2000s). So I'm biased in favour of stockpicking, which isn't for everyone.

I am somewhat similar:

1) A core of index funds, to easily and cheaply capture beta.

2) Some ITs that generally reflect sectoral or regional themes I want active exposure to longer-term, where I do not have the knowledge e.g. biotech, emerging markets.

3) Companies that I feel comfortable holding for decades, and in which I have built up a feeling for over the years. If they do very well I trim them back to prevent them becoming too large a percentage - have done this with Apple, Amazon and John Deere in recent years.

4) Some fun picks, tactical or technical in nature, often shorter-term and/or employing options.

[TheMotorcycleBoy]

I currently have 33 holdings, 11 of which are Investment Trusts which don't require much monitoring. I spent something like 20 hours deciding which investment trusts to buy.

My 10 largest holdings make up 55% of my portfolio. Most have been held for many years, so I have accumulated a lot of knowledge about each one, vastly more than say my 30th largest holding.

I should add that investing is a hobby for me and always will be. Also had I been investing in trackers whilst working, I'd probably still be working (my big gains were in small oil explorers in the early 2000s). So I'm biased in favour of stockpicking, which isn't for everyone.

I am somewhat similar:

1) A core of index funds, to easily and cheaply capture beta.

2) Some ITs that generally reflect sectoral or regional themes I want active exposure to longer-term, where I do not have the knowledge e.g. biotech, emerging markets.
've
3) Companies that I feel comfortable holding for decades, and in which I have built up a feeling for over the years. If they do very well I trim them back to prevent them becoming too large a percentage - have done this with Apple, Amazon and John Deere in recent years.

4) Some fun picks, tactical or technical in nature, often shorter-term and/or employing options.

Wow. Thanks to both of you.

This information you've shared tells me that my portfolio, is most definitely not a "concentrated portofolio" by any stretch of the imagination. I currently have 52 holdings, and only 6 of these are compound instruments. Hmm... probably a big part of the reason that I'm getting pretty badly inundated with trying to keep up. I'm obviously continually topping things up, and adding and periodically exiting positions. I've been unitising the portfolio since Jan 2019, and returned about 22% for 2019, 2% for 2020, about 18% for 2021, but have lost about 15% so far this year (probably due to inflation, rates, the Russia/Ukraine war, and my foli being fairly tech and growth heavy). Due the "covid year" and now the Russian/inflation year, my annualised return is about 7.5% I think.

FWIW This is my portfolio to date, the third column being the holdings % of the current market value. Ignore the cash part, that's just the slush in the ISAs, I hold my main cash in Marcus instant access savings account.

DIAGEO ORD GBP0.28 101/108                  | DGE    | 4.10%
RELX PLC GBP0.1444                          | REL    | 3.30%
MICROSOFT CORP COM USD0.00000625            | MSFT   | 3.10%
CRODA INTL ORD GBP0.10609756                | CRDA   | 3.10%
GAMES WORKSHOP GRP ORD GBP0.05              | GAW    | 3.00%
GLAXOSMITHKLINE ORD GBP0.25                 | GSK    | 2.90%
SPIRAXSARCO ENG ORD GBP0.269230769          | SPX    | 2.80%
SAGE GROUP GBP0.01051948                    | SGE    | 2.80%
CENTRAL ASIA METAL ORD USD0.01              | CAML   | 2.80%
SMITH NEPHEW ORD USD0.20                    | SN.    | 2.70%
LEGAL GENERAL GP ORD GBP0.025               | LGEN   | 2.70%
UNILEVER PLC ORD GBP0.031111                | ULVR   | 2.50%
NEXT ORD GBP0.10                            | NXT    | 2.40%
SPIRENT COMMS ORD GBP0.03333                | SPT    | 2.40%
LVMH MOET HENNESSY EUR0.30                  | MC     | 2.40%
ALBEMARLE CORP COM USD0.01                  | ALB    | 2.40%
JPMORGAN CHINA GTH ORD GBP0.25              | JCGI   | 2.30%
ALPHABET INC CAP USD0.001 CL C              | GOOG   | 2.30%
TATE LYLE ORD GBP0.25                       | 174U   | 2.30%
BURBERRY GROUP ORD GBP0.0005                | BRBY   | 2.20%
CISCO SYSTEMS COM USD0.001                  | CSCO   | 2.20%
SOFTCAT PLC ORD GBP0.0005                   | SCT    | 2.20%
RENISHAW ORD GBP0.20                        | RSW    | 2.10%
FIL INV SVCS UK INDEX WORLD P ACC NAV       | FIAAGM | 2.10%
XP POWER LTD ORD GBP0.01 DI                 | XPP    | 2.10%
INTEL CORP COM USD0.001                     | INTC   | 1.90%
ADIDAS AG NPV REGD                          | ADS    | 1.90%
NVIDIA CORP COM USD0.001                    | NVDA   | 1.80%
PEPSICO INC CAP USD0.016666                 | PEP    | 1.80%
POLAR CAP TECH TST GBP0.25                  | PCT    | 1.80%
GREENCOAT UK WIND ORD GBP0.01               | UKW    | 1.70%
VICTREX ORD GBP0.01                         | VCT    | 1.70%
VISA INC COM STK USD0.0001                  | V      | 1.60%
HALMA ORD GBP0.10                           | HLMA   | 1.50%
MARSHALLS ORD GBP0.25                       | MSLH   | 1.50%
LEGAL GENERAL UC ROBO GLOBAL ROBAUTO GO UCI | ROBG   | 1.40%
BIOVENTIX PLC ORD GBP0.05                   | BVXP   | 1.40%
CASH                                        | CASH   | 1.30%
WALT DISNEY CO. COM DISNEY USD0.01          | DIS    | 1.30%
JOHNSON JOHNSON COM USD1.00                 | JNJ    | 1.30%
MCDONALDS CORP COM USD0.01                  | MCD    | 1.20%
UBS LUX FUND MSCI SWITZRLND 20/35 UCITS     | UC94   | 1.20%
STRIX GROUP PLC ORD GBP0.01                 | KETL   | 1.20%
WPP PLC ORD GBP0.10                         | WPP    | 1.20%
MODERNA INC COM USD0.0001                   | MRNA   | 1.20%
BLOOMSBURY PUBLISH ORD GBP0.0125            | BMY    | 1.10%
GENUIT GROUP PLC ORD GBP0.001               | GEN    | 1.00%
NATIONAL GRID ORD GBP0.12431289             | NG.    | 0.70%
PAYPAL HOLDINGS IN COM USD0.0001            | PYPL   | 0.70%
DARKTRACE PLC ORD GBP0.01                   | DARK   | 0.60%
STARBUCKS CORP COM USD0.001                 | SBUX   | 0.50%
BODYCOTE PLC ORD GBP0.1727272               | BOY    | 0.50%
ITM POWER ORD GBP0.05                       | ITM    | 0.20%

Perhaps, I should consider putting more into Index tracker FIL INV SVCS UK INDEX WORLD P ACC NAV, since I'm probably already pursuing a somewhat time intensive way of replicating this very effect. Whilst I do quite enjoy the research and analysis side of investing, it's so hard to find the time, what with having a whole bunch of other pursuits.

thanks again for your knowledge, and your information,
Matt

[absolutezero]

Apologies guys, I know this is very off-topic. But roughly how many individual holdings do you all hold in your portfolios?

I'm curious, because after 4 years of investing, I'm wondering whether or not I'm at a junction in my path, since the World has moved (so it seems) from a time of low inflation and relative peace to one of high inflation and Cold War II. It's making me weigh up the following thoughts:

1. Stay with a concentrated equity portfolio and attempt to stay "up to date" on each holding. This is roughly what I'm doing now, but it's getting tougher as I add more holdings and continue with the day job.
2. Diversify more, and accept that less overall knowledge of each holding is needed since each holding constitutes a smaller percentage.
3. Give up, and buy the World Equity Index tracker

I currently have 33 holdings, 11 of which are Investment Trusts which don't require much monitoring. I spent something like 20 hours deciding which investmwnt trusts to buy.

My 10 largest holdings make up 55% of my portfolio. Most have been held for many years, so I have accumulated a lot of knowledge about each one, vastly more than say my 30th largest holding.

Shortly before I retired (in 2003), I had 12 holdings. Since I was going to live off my portfolio I added 8 Investment trusts (before retiring) to provide a lot of diversification.

Being retired makes it a lot easier to keep any eye on my shareholdings than when I was working. Also having bought my first shares in 1981, and having worked in finance for 14 years, I have a lot of experience to draw upon. But I am reluctant to go above 35 holdings nowadays as this will dilute my focus.

The decision to buy Thales and AeroVironment didn't take long. I owned AeroVironment shares for a few years and sold them 10 years ago, so it didn't take me long to get up to speed regarding the company. A couple of friends used to work for one of Thales subsidiaries and they keep reasonably up to date with what's going on.

Also they aren't big holdings (combined just under 1% of my portfolio, they are my two smallest holdings) so I didn't spend a huge amount of time before buying - the decision was mostly gut instinct. I spent about ten times as much time deciding to buy Farmland Partners (admittedly a much larger holding).

I should add that investing is a hobby for me and always will be. Also had I been investing in trackers whilst working, I'd probably still be working (my big gains were in small oil explorers in the early 2000s). So I'm biased in favour of stockpicking, which isn't for everyone.

Both of these sound like great candidates for my 'Show me your portfolio" thread!
https://www.lemonfool.co.uk/viewtopic.php?f=56&t=34154

[doug2500]

I have 35, but 9 are funds or trusts and as the others have mentioned I don't feel the need to spend much time on these.

Of the remaining 26 a couple are tiny and one of these days I'll get round to selling them.

This has grown to be more than I would class as ideal but as my pf has grown I have become aware of liquidity as many of my holdings are small cap. I have decided to allow myself a few more smaller holdings because of this. It's not been a problem so far, it's just something that has crossed my mind as having the potential to bite me in certain circumstances.

[dealtn]

Apologies guys, I know this is very off-topic. But roughly how many individual holdings do you all hold in your portfolios?

About 25. A few more if you include those in family member's portfolios. All individual shares no funds or other collectives.

[MDW1954]

I have many more -- probably 70-ish, although I don't count. (They're spread across several portfolios, with lots of overlaps.)

In general, I'm an income investor, although transitioning to growth again as my income goals are largely attained.

Lots of HYP shares, lots of REITs, lots of ITs, and a few growth-focused ITs, eg SMT. (Probably my largest holding.)

Back when I had a more focused portfolio (2008, say), I found that I was less resilient. The REITs have been good at building resilience.

MDW1954

[AsleepInYorkshire]

DIAGEO ORD GBP0.28 101/108                  | DGE    | 4.10%
RELX PLC GBP0.1444                          | REL    | 3.30%
MICROSOFT CORP COM USD0.00000625            | MSFT   | 3.10%
CRODA INTL ORD GBP0.10609756                | CRDA   | 3.10%
GAMES WORKSHOP GRP ORD GBP0.05              | GAW    | 3.00%
GLAXOSMITHKLINE ORD GBP0.25                 | GSK    | 2.90%
SPIRAXSARCO ENG ORD GBP0.269230769          | SPX    | 2.80%
SAGE GROUP GBP0.01051948                    | SGE    | 2.80%
CENTRAL ASIA METAL ORD USD0.01              | CAML   | 2.80%
SMITH NEPHEW ORD USD0.20                    | SN.    | 2.70%
LEGAL GENERAL GP ORD GBP0.025               | LGEN   | 2.70%
UNILEVER PLC ORD GBP0.031111                | ULVR   | 2.50%
NEXT ORD GBP0.10                            | NXT    | 2.40%
SPIRENT COMMS ORD GBP0.03333                | SPT    | 2.40%
LVMH MOET HENNESSY EUR0.30                  | MC     | 2.40%
ALBEMARLE CORP COM USD0.01                  | ALB    | 2.40%
JPMORGAN CHINA GTH ORD GBP0.25              | JCGI   | 2.30%
ALPHABET INC CAP USD0.001 CL C              | GOOG   | 2.30%
TATE LYLE ORD GBP0.25                       | 174U   | 2.30%
BURBERRY GROUP ORD GBP0.0005                | BRBY   | 2.20%
CISCO SYSTEMS COM USD0.001                  | CSCO   | 2.20%
SOFTCAT PLC ORD GBP0.0005                   | SCT    | 2.20%
RENISHAW ORD GBP0.20                        | RSW    | 2.10%
FIL INV SVCS UK INDEX WORLD P ACC NAV       | FIAAGM | 2.10%
XP POWER LTD ORD GBP0.01 DI                 | XPP    | 2.10%
INTEL CORP COM USD0.001                     | INTC   | 1.90%
ADIDAS AG NPV REGD                          | ADS    | 1.90%
NVIDIA CORP COM USD0.001                    | NVDA   | 1.80%
PEPSICO INC CAP USD0.016666                 | PEP    | 1.80%
POLAR CAP TECH TST GBP0.25                  | PCT    | 1.80%
GREENCOAT UK WIND ORD GBP0.01               | UKW    | 1.70%
VICTREX ORD GBP0.01                         | VCT    | 1.70%
VISA INC COM STK USD0.0001                  | V      | 1.60%
HALMA ORD GBP0.10                           | HLMA   | 1.50%
MARSHALLS ORD GBP0.25                       | MSLH   | 1.50%
LEGAL GENERAL UC ROBO GLOBAL ROBAUTO GO UCI | ROBG   | 1.40%
BIOVENTIX PLC ORD GBP0.05                   | BVXP   | 1.40%
CASH                                        | CASH   | 1.30%
WALT DISNEY CO. COM DISNEY USD0.01          | DIS    | 1.30%
JOHNSON JOHNSON COM USD1.00                 | JNJ    | 1.30%
MCDONALDS CORP COM USD0.01                  | MCD    | 1.20%
UBS LUX FUND MSCI SWITZRLND 20/35 UCITS     | UC94   | 1.20%
STRIX GROUP PLC ORD GBP0.01                 | KETL   | 1.20%
WPP PLC ORD GBP0.10                         | WPP    | 1.20%
MODERNA INC COM USD0.0001                   | MRNA   | 1.20%
BLOOMSBURY PUBLISH ORD GBP0.0125            | BMY    | 1.10%
GENUIT GROUP PLC ORD GBP0.001               | GEN    | 1.00%
NATIONAL GRID ORD GBP0.12431289             | NG.    | 0.70%
PAYPAL HOLDINGS IN COM USD0.0001            | PYPL   | 0.70%
DARKTRACE PLC ORD GBP0.01                   | DARK   | 0.60%
STARBUCKS CORP COM USD0.001                 | SBUX   | 0.50%
BODYCOTE PLC ORD GBP0.1727272               | BOY    | 0.50%
ITM POWER ORD GBP0.05                       | ITM    | 0.20%

Perhaps, I should consider putting more into Index tracker FIL INV SVCS UK INDEX WORLD P ACC NAV, since I'm probably already pursuing a somewhat time intensive way of replicating this very effect. Whilst I do quite enjoy the research and analysis side of investing, it's so hard to find the time, what with having a whole bunch of other pursuits.

thanks again for your knowledge, and your information,
Matt

What do you feel you're comfortable with?

That's really all that matters isn't it?

There's a clear time and reward ratio. You're asking us what we think about your diversification. We don't matter. You need to make that decision for yourself. You don't need feedback. You need confidence and self awareness. You have both.

AiY(D)

[Dod101]

I am primarily an income investor and to that end hold 21 income shares and 9 growth shares, a total of 30. I could also break the portfolio down as 19 direct company holdings, 8 investment trusts and 3 corporate bond funds.

I know all the holdings pretty well and monitor them all, maybe more than I should or need to.

I think what Matt needs to do is decide what his portfolio is for, presumably simply growth and then carefully look at each of his holdings to decide if it measures up. 52 holdings would certainly be too many for me but as has been said, he needs to decide if he feels comfortable with that many. The fact that he is querying that would suggest maybe not.

I would at the very least go through them all and ask myself why I hold each one. Then try to rank them in terms of desirability, and maybe cull say the lowest ranking 20% or so.

Dod

[Itsallaguess]

I would at the very least go through them all and ask myself why I hold each one. Then try to rank them in terms of desirability, and maybe cull say the lowest ranking 20% or so.

With six of his lower-weighting holdings each representing less than 1% of overall portfolio value, I'd question if even a 100% gain in one of those holdings would even register beyond the overall 'portfolio capital noise' usually seen by him week to week.

If multi-bagging micro-holdings like that wouldn't even stand out beyond that general portfolio-level capital noise, then I'd seriously question the logic in holding those first if I were looking to reduce and rationalise my portfolio...

Cheers,

Itsallaguess

[Dod101]

I would at the very least go through them all and ask myself why I hold each one. Then try to rank them in terms of desirability, and maybe cull say the lowest ranking 20% or so.

With six of his lower-weighting holdings each representing less than 1% of overall portfolio value, I'd question if even a 100% gain in one of those holdings would even register beyond the overall 'portfolio capital noise' usually seen by him week to week.

If multi-bagging micro-holdings like that wouldn't even stand out beyond that general portfolio-level capital noise, then I'd seriously question the logic in holding those first if I were looking to reduce and rationalise my portfolio...

Cheers,

Itsallaguess

Thanks yes. I did not mention that because one or two at least seem to be new holdings in the process of being established or are maybe 'fun' holdings As a long term holding there is not much point in being very much under what might be your 'average' holding which, with 52 holdings, would be around 2%. I aim for around 3% with 30 holdings, and allow that to rise to around 50% more or say 4.5/5.00%. If it falls back much lower than my 3% I periodically check and may cull it. At least for each of my holdings I know why I hold it and why it is the size it is in my portfolio.

I should have mentioned that ITs of course give instant diversification, but I categorise each of them as growth or income just like a directly held individual company share. I see no reason to do otherwise.

Dod

[BullDog]

Some good answers up there.

It seems to me, the OP has effectively built himself a self managed income/growth investment trust. With so many holdings, many of them very small, the question I would be asking myself is "am I doing better than an investment trust manager?"

And then take it from there depending on whether the answer is yes or no.

Personally, there's about 3x the number of holdings I would be comfortable with.

[JohnW]

And in brief but reproducible, concrete terms how would one measure how well one had done, and which trust manager would you compare that with?

[BullDog]

And in brief but reproducible, concrete terms how would one measure how well one had done, and which trust manager would you compare that with?

Depends how good the OP's record keeping is. Perhaps use one of the many investment related sites that allows you to select multiple investment trusts over different timescales and compare the OP's portfolio returns against it. Of course, it depends entirely on how good the OP's record keeping is and it depends whether the OP is bothered how his portfolio performs against investment trusts. Perhaps he isn't.

[JohnW]

Thanks. If Matt has added to his portfolio over the last 4 years I don’t know how you would measure its performance in a way that is comparable to an investment trust whose unit prices are unaffected by inflows/outflows or if the unit prices are - even worse.
Secondly, yes, select multiple investment trusts; but which do you then choose to compare with?

[BullDog]

Thanks. If Matt has added to his portfolio over the last 4 years I don’t know how you would measure its performance in a way that is comparable to an investment trust whose unit prices are unaffected by inflows/outflows or if the unit prices are - even worse.
Secondly, yes, select multiple investment trusts; but which do you then choose to compare with?

I believe OP has unitised his portfolio. Which suggests he has good records so it would be a fairly simple comparison. What to compare with? Obviously, an individual's choice. The portfolio listed is quite diverse. So I would suggest comparing it against things like Bankers, Saints, JP Morgan Global Growth and Income, Murray International. If I couldn't beat them, I would join them.

The OP may or may not be interested. I would be.

[doug2500]

I used to use FTSE Allshare TR to compare my unitised pf to until someone pointed out it may not be challenging enough if I wanted to take a wider view. They were right I think, so I still track it but use SSAC as my high hurdle benchmark. It's an all world acc ETF:

https://www.hl.co.uk/shares/shares-sear ... sd-acc-gbp

[TheMotorcycleBoy]

Thanks. If Matt has added to his portfolio over the last 4 years I don’t know how you would measure its performance in a way that is comparable to an investment trust whose unit prices are unaffected by inflows/outflows or if the unit prices are - even worse.
Secondly, yes, select multiple investment trusts; but which do you then choose to compare with?

I believe OP has unitised his portfolio. Which suggests he has good records so it would be a fairly simple comparison. What to compare with? Obviously, an individual's choice. The portfolio listed is quite diverse. So I would suggest comparing it against things like Bankers, Saints, JP Morgan Global Growth and Income, Murray International. If I couldn't beat them, I would join them.

The OP may or may not be interested. I would be.

Yes I do unitise every month. I then compare my YoY against that of the FTSE100 TR, FTSE250 TR and SP500. I've never outperformed the SP500. But I periodically outperform the FTSE100 TR and FTSE250 TR. Currently I'm outperforming the FTSE250TR by a small margin, but the FTSE100TR is outperforming me. During the covid months I outperformed both of the FTSE probably due to my US tech weighting, and the fact that Spirax Sarco, Games workshop and Croda did very well.

I would at the very least go through them all and ask myself why I hold each one. Then try to rank them in terms of desirability, and maybe cull say the lowest ranking 20% or so.

With six of his lower-weighting holdings each representing less than 1% of overall portfolio value, I'd question if even a 100% gain in one of those holdings would even register beyond the overall 'portfolio capital noise' usually seen by him week to week.

If multi-bagging micro-holdings like that wouldn't even stand out beyond that general portfolio-level capital noise, then I'd seriously question the logic in holding those first if I were looking to reduce and rationalise my portfolio...

Cheers,

Itsallaguess

Thanks to Dod and IAAG,

To be honest, I do have a rationale for holding even the smaller ones. They are small typically because I've not topped them up ever. This is especially the case with NG. since I bought this a couple of years ago in the low 800s and it's currently way too high for me to consider adding to it (in my humble opinion).

For AIM shares I usually add them to my foli at a purchase value of about 60-70% that of a main market share. This is certainly the case with DARK and ITM. As I've acquired more confidence with my other AIMs (e.g. KETL, BVXP and CAML) I've added more to them over time. There's more risk and losses is minimised due to the absence of STD. I'm slowly starting to build up the smaller holdings, but I'm trying to undertake that task with caution.

Matt

[TheMotorcycleBoy]

What do you feel you're comfortable with?

That's really all that matters isn't it?

There's a clear time and reward ratio. You're asking us what we think about your diversification. We don't matter. You need to make that decision for yourself. You don't need feedback. You need confidence and self awareness. You have both.

AiY(D)

Many thanks for this AiY. Yes I am comfortable with what I have so far.

The "time VS reward" issue is of course the biggie. I suppose if I didn't have the day job I'd have more time (since I enjoy the research). The problem is without the day I wouldn't have the money!

Matt