How much is too big a % of your port? Right now AAPL and SWKS together are at 14% of port. And I’m tempted to buy a little more… but that’s getting to be a big slice.
Where would you cut it off?
Karen
I also own both, at 11% of my total portfolio.
My largest two positions (of which one is Apple) are at about 16%, which is as much concentrated risk as I prefer. I suspect many others on this board that use a concentrated portfolio approach would have a larger percentage, but that is not my own style of investing.
Tom
Hey Karen !
There’s nothing wrong with a concentrated portfolio … if you want one.
Rich (haywool) trying to concentrate
I’ve been using AAPL as seed money for new positions and it’s double the size of any other holding I have right now. Been trimming down but still remains ~16% of my portfolio and was as high as 22% less than a year ago. It’s a huge chunk and risky so I will be trimming it down further as time goes on. AAPL is also up 36% since this time last year so I’m not in a big hurry. There is no right or wrong here, it all depends on how comfortable you are with the risks of having a more concentrated portfolio. If I am remembering correctly Saul has ~50% of his holdings in just 4 tickers. Just for reference my largest holdings aside from AAPL in order are NFLX, AMBA, SKX, BOFI, SWKS. Some have grown into those positions and others I feel are good risk vs. reward situations at this time so they were given more $ to start with.
Ray
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Your % holdings have me astonished at your appetite for risk and fearing for your safety.
I take it you are all dependent-free millionaires with lifestyles well supported by other holdings and here you are indulging a sporting instinct on the side. I like that.
Reassure me you don’t really have investments you can count on the fingers of one hand, most technological, and percentage holdings in the teens.
No. It cannot be true.
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Most of mine (both in IRA and brokerage accts) are ~1.5% to 2% groupings. There are a few I’ve doubled-down on as they became attractive again on dips that didn’t really change the long-term story (CRTO, AMBA, GILD, for example). And I have a small few that are 3% or more (BWLD is one). Right now that means I’m increasing the number of companies, which is appropriate because that’s where I am in my investing life… but I can see consolidation in the next few years as winners are harvested and new seed is planted.
I could tolerate a 15% position in any one place, but that’s about it for me right now, and I consider myself to be pretty aggressive and risk-tolerant.
YMMV, of course, based on your own tolerance/style…