This is a follow on to Bear’s post above but thought it would be best served in a different thread. Most of the investors here have very different risk tolerances, experience levels and investing temperaments. I clearly do not have Sauls’s, or Tinker’s, or Duma"s or Denny’s or Bear’s or Dreamer’s, Mauser’s, etc. returns and experience. Most of you don’t. These guys teach us how to think along with others on this board and NPI.
I have my own. I do not have these guys returns and probably never will because my temperament and timing are not the same as theirs, but I am ok with that. I like what I like and I have a reason I am comfortable with. I usually try to have a couple of high growth stocks that have cleared the hurdle of profitability and also have a well established moat. Hence I own NVDA and ALGN. I may not get Saul’s returns with these two but I know they will beat the market handily year in and year out and they have technology advantages and patent protection to keep the moat full.
I also try to include several high growth stocks that are disrupting macro wave markets (right now cloud) with a path to profitability. I want these stocks to have superior customer acceptance, high gross margins and solid FCF. Hence I own AYX, PVTL, MDB, ZS.
I also feel compelled to keep a couple of high growth “people facing” stocks that that are continually innovating. Hence I own SQ and SHOP ( I have sold over 75% of my original SHOP position).
My point is to find what you are comfortable with and lets you sleep. Listen to the wise ones but make your own decisions. Learn to live with the results of your decisions.