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Portfolio Strategy: Diversification, Concentration and Position Sizing
How many stocks to own and how much to hold in each: the trade-off between diversification and concentration, and why over-diversifying can dilute your best ideas.
4 articles
The Disposition Effect: Why Selling Your Winners Too Early Is a Costly MistakeThe disposition effect is the documented tendency to sell winning investments too early and hold losing ones too long. It is a well-studied cognitive bias, and it tends to feel like good sense, which is what makes it expensive. Selling a stock the moment it shPortfolio Strategy · 6 min readWhat Is a Buy and Hold Strategy? Why It Works and How to Run OneA buy and hold strategy means buying shares in good businesses and holding them for years, through the market's ups and downs, instead of trading in and out. Own businesses worth owning, then give them time to compound. The buying is easy. The discipline to kePortfolio Strategy · 6 min readWhat Is a 13F?A 13F is a report that large investment managers must file with the U.S. Securities and Exchange Commission every three months, listing the US stocks they held at the end of the quarter. Any manager with at least $100 million in US-listed shares has to file onPortfolio Strategy · 5 min readDiversification vs Concentration: How Many Stocks Should You Own?Diversification is not overrated for most investors. Spreading your money across many holdings is the most reliable way to cut risk, and for the average investor it should be the default. But it can be overdone. Past a point, adding more stocks stops lowering Portfolio Strategy · 7 min read