Post Reply
1-9 of 9
Thank you for your very detailed suggestions. Spoken like a pro. Very much appreciated indeed!
jeremyow ( Date: 17-Jun-2009 00:47) Posted:
|
Your input duly noted. Thank you!
freeme ( Date: 16-Jun-2009 21:03) Posted:
|
I might have to do that because I do not have enough cash for a big portfolio. Good point. Thank you!
stupidfool ( Date: 16-Jun-2009 20:58) Posted:
|
Not more than 10 stocks in one's portfolio. 10 stocks maximum should provide enough diversification already. The different selected stocks must belong to different sectors of businesses (to gain sufficient diversification). Within the different stocks in one's portfolio, most capital is invested in the company that is most promising among the lot and least capital invested in the company that is least promising among the lot. All the selected stocks must belong to only the most established and outstanding companies with excellent track record (more than 10 years) within each sector of businesses. One can also include exchange traded funds (ETFs) that are diversified investment counters in his portfolio.
The above suggested portfolio is for an investor without deep knowledge in evaluating businesses. Such investors receive protection of capital by a diversified portfolio.
However, if an investor can evaluate businesses very thoroughly, he may invest in only a few selected businesses (less than 5 stocks) that are evaluated to be the most outstanding among the many public listed businesses out there. This is called focus investing (investing heavily in only less than 5 stocks). To do so, the investor must be very good at evaluating businesses such that he is highly convinced to invest his capital heavily in only a few most outstanding companies.
<A diversified portfolio works best for the average investor. He will likely receive average rate of returns peg close to index benchmark.>
<A focused portfolio is only suitable for a knowledgeable investor good in evaluating businesses. He will likely receive higher rate of returns above the index benchmark should his judgment be accurate.>
if im total new, i will put
20% in Ship trust
20% in REITS
30% in S Chip
30% blue chip
In my opinion,do not need to invest or spread ur money into so many counters.
Stay focus on a few.
Thank you for your reply, Hulumus. That sounds reasonable. All categories covered. I will certainly keep this in mind when building up my porfolio.
Cheers
Hulumas ( Date: 16-Jun-2009 18:18) Posted:
|
one portion of CASH, one HYPER BLUECHIP, two BLUECHIPS, three BIG CAPITALISATION STOCKS, five MEDIUM CAPITALISATION STOCKS, eight SMALL CAPITALISATION STOCKS and thirteen PENNY STOCKS.
Hello Everyone,
First of all, a big thank you to all who selflessly share their views and knowledge of the stock market, and market movements on this forum.
I am new to stock trading and am trying to build my portfolio. Can the veterans and successful traders tell us newbies what constitutes a good portfolio?
A big thank you in advance！
Cheers,
Clueless