Love the board Saul. Just wondering, when opening a new position, what percent of your portfolio do you buy in at? Thanks for the great conversation and advice.
Chad
Just wondering, when opening a new position, what percent of your portfolio do you buy in at?
Hi Chad, This is from Neil’s FAQ/Knowledgebase (currently post #4941). If you haven’t read it, you should. It’s a compilation of various words of wisdom.
* Since I’m almost always nearly 100% invested unless I’ve recently sold out of a big position, I often don’t have the money to take a full position all at once. If it’s something I absolutely fall in love with, I’ll jump into it right away with whatever money I have available, and will likely trim some other large positions to fill out a full position. If I’m not sure, I’ll take a small position and start graphing it and getting news feeds to put it on my radar. I then may start adding more as money becomes available, often building to a “full” position, which is an average position, not a “large” position like the ones I listed a few posts back (which stocks have to grow into). I may do this fairly rapidly, or if I’m building two or three new positions I may have to split available funds between them. Or as I get more familiar with the stock that I’ve taken a starter position in, I may say to myself, “This is stupid, it’s not my kind of stock”, and sell out of my starter position. That does happen. [Post 21]
The only real answer to your question is: “That depends.” Right now I have 17 positions so an average or “full” position will be about 6%. I never start with an oversized position. If I’m just starting with a small position it can be just 1% or 2%. If I’m in love with it, I might get to an average position as quickly as I can.
As I said, read the FAQ/ Knowledgeable. It’s crammed full of great stuff.
Saul
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