I am really impressed by Saul’s investment success so far.
I follow a slightly modified formula.
I take 10 best growth stocks and invest equal amount in each company.
As of today my 10 best companies in my portfolio are:
I started now with 25% cash buy into these companies and will invest 25% in the next 3 quarters.
I will keep cash in SPY while easing slowly into these high quality growth companies.
I will follow this board for wise counsel.
“I will keep cash in SPY while easing slowly into these high quality growth companies.”
SPY is not cash. TMF made the mistake of doing this with their Million Dollar Portfolio a number of years back. They parked all of the cash in SPY and then started building only to have the market tank and pull it all down.
Now assume you have the opposite luck (it IS luck if the market goes up in the short term), well now your SPY has gone up, but not as much as other great companies.
My point is. If you are going to be fully invested, why not invest in these great companies you already know and follow actively? If you are going to slowly build positions over time due to a windfall, I’d just stay in cash (a process I just finished going through myself). I don’t see room for a middle ground personally, but this is not a recommendation. We each do what we feel is right and that is great. I’m just sharing my viewpoint here.
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