On single stock investing.

On single stock investing.

There are many relative investing novices on our board who are trying to learn good methods for investing. We have a responsibility to them not to advocate insane gambling methods of investing, such as investing essentially all of your assets in a single turn-around stock that had fallen to under-five-dollars and then bragging because your one-stock lottery ticket happened to pay off, and the stock rose to $14. (Look, that doesn’t make one a genius: Twilio quintupled in a year, Okta and Alteryx tripled. I wouldn’t have advised anyone though, to have put all their money in any one of them, and I would have thought it stupid, and very bad advice, to have done so or to have advocated it.)

Further posts on one-stock investing are off-topic. They are not what our board is about, and they are dangerous to people trying to learn how to invest. For the time being, further discussions of Enphase and one-stock investing will be deleted.




Out of curiosity, what was that company, if you don’t mind saying?

To clarify Saul’s point, in the unlikely event that anyone might get the wrong idea, he is not saying that posts about a single stock are off-topic. Each piece of our portfolios should be the result of an evaluation of a single stock. That is a bit of a John Madden-esque obvious point, but still not completely worthless to state despite its apparent obviousness.

Not to try to make a generalized board rule, and portfolio allocations are very much dependent on an individual’s overall situation, but I will throw this out based on my observations over the past few years. It would probably be safe to assume that espousing buying into a position that would make up greater than 20% of your portfolio would be a bad idea in general. If a position grows to the point of being greater than 20%, that might be a slightly different matter. Also, how your self-managed portfolio or your “Saul-style” portfolio fits into your overall net worth are key considerations. These are items that should not be reasonably assumed to be fleshed out here on the board, as they are off-topic. My point with this paragraph is to try to put a bit of a semi-defined bound on the point Saul’s post is going for.

Espousing buying into a position of greater than 20% seems foolish (lower case f), although I do still respect Tinker’s thoughts even if he might sometimes (or even oftentimes) do such a thing.

may consider trimming TTD if they blow it out again tomorrow afternoon, or may just let it continue grow into an oversized position