OT Percentage Allocations for each stock


Apologies for the OT post. Hoping I can get some personal responses to a question I am grappling with. When you look at percentages do you look at percentages you are comfortable allocating to a particular stock as a total of your total portfolio to include any 401K asset value as well or do you only consider the allocation as a percentage of non 401k money that you invest. For those with larger 401K balances the amounts could be quite large if one were to include the 401k balance as well and trying to see how others grapple with it.

Apologies for the OT request and hope there are others who grapple with the same situation and trying to understand how they deal with it.


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Hi Mike, this is OT for Saul’s board, but I will message you an answer for how our family does it. -K


This is what I did:

Decide how much of your pile you can afford to lose more than half of without endangering your personal situation. Put that money into a “growth companies” account at some online brokerage. Consider your age, employment, other incomes, etc. Keep the rest in whatever you consider safe. You will be spending a lot of time paying a lot of attention to the growth companies. The other investments should require less time.

Study what the smart ones here write about the companies, how they evaluate them, how they balance their investments and combine with your own intelligence and diligence. Balance? Yes. They don’t put all their money into one or two companies. They tend to have 6-10 companies with weighting skewed to “high confidence” companies.

You don’t have to be in a big hurry. When investing in quality businesses, you do have time, even if you make only 50% on a company instead of the 100% someone else made by jumping the gun. The people who invest immediately because they saw some article that highlighted only a few things, that is gambling, not investing.

Reading what the smart ones here say about their decisions helps educate you.

Confidence builder: How do we know this system works? Read the posts of the regulars who post their decisions every month. Saul, GauchoRick, Paul, a dozen others. You see the results. Some internet ad may talk about “Joe and Mary doubled their money investing with us”. You never see the proof. Here, you see the proof.


Ouch. Apologies. I posted here. Sorry. Delete. I will send to the poster directly.

Final post on this topic. Quite a few members on the board reached out and shared their views which have been extremely helpful to me as I move forward on my investing journey. I wanted to thank this community for the insight that they offer to other members and for those that took the time to reach out and respond. Thank You all and very appreciative of the tremendous knowledge that is shared on the forum.


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