Key insights
- The post discusses the risk management strategies of investors who concentrate their portfolios in a small number of stocks, contrasting this approach with diversified ETF investing. It explores the potential for high returns versus the increased risk, and questions the role of stop-loss orders, fundamental analysis, and technical analysis in managing concentrated positions. The overall tone suggests a cautious approach to concentrated investing, implying a slightly negative influence on market sentiment as it highlights potential risks.
I moved on from ETFs and am doing individual stocks. I’ve been doing decent w the bull run but I’m holding I believe 35 stocks as of writing this. Some are doing better than others.
Well I sometimes see posts from time to time of people starting w 100k and making bank off having under 10 holdings in their portfolio. Like massive run up gains w certain picks.
Is this a gradual skill level up whereas time goes on and you get more comfortable you go “all in” on a select number of stocks?
One of my friend only holds 2 stocks and he’s majority all in. Holding them for a few months to years hoping to make a bag off them.
Do you have tight stop losses? Check up on your holdings once a week? See if EMA levels hold? Double triple check stock fundamentals Every week/ quarter?