Wondering how you would change your position sizing if you had a multimillion dollar portfolio? You may have smaller positions. a 2% position is still $100,000 in a $5M portfolio.
Most of my money (80ish%) is in the Total Market cause I believe in something called the Pareto Principle where 20% of effort leads to 80% of results and the inverse is also true. But at the same time I still am a bit arrogant and think that I can beat the market so the goal is that the remaining 20% of my money goes into high conviction investments which I want to be about 5-10 companies at the most
No limit on absolute ownership, but you now need more equity than you did in the past, plus effectively capital gains tax has been introduced (called the bright line test here), and there could be changes to interest deductibility coming up soon which is quite a strange one
I’m having the problem of wanting to buy Tencent but I’m fully invested. I know that I should sell my worst investment if tencent is better but how does one compare/rank stocks? Maybe try to quantify downside and upside and asses probabilities/knowing your conviction? What’s you take?
It's a tough and quite personal decision. Theoretically selling the worst investment is the best thing to do, but harder to implement in practice. And as Pabrai says, the mistress always looks hotter than the wife, but isn't necessarily!
The Great Debate: Property & Shares (Free Hatch Webinar):
www.hatchinvest.nz/property-and-shares
I believe high concentrated portfolios do best over time
If you're right on the businesses then certainly
Wondering how you would change your position sizing if you had a multimillion dollar portfolio? You may have smaller positions. a 2% position is still $100,000 in a $5M portfolio.
Very interesting thoughts. If I could start from scratch I'd probably be more concentrated than I am today.
Hi Tom, is that box of Pokémon cards in the background your investment? 😅
It was a gift from Joshua Wang 🙂
Most of my money (80ish%) is in the Total Market cause I believe in something called the Pareto Principle where 20% of effort leads to 80% of results and the inverse is also true. But at the same time I still am a bit arrogant and think that I can beat the market so the goal is that the remaining 20% of my money goes into high conviction investments which I want to be about 5-10 companies at the most
How are the regulations in NZ regarding buying loads of rental properties? Is it allowed or does the government try to regulate that away?
No limit on absolute ownership, but you now need more equity than you did in the past, plus effectively capital gains tax has been introduced (called the bright line test here), and there could be changes to interest deductibility coming up soon which is quite a strange one
I’m having the problem of wanting to buy Tencent but I’m fully invested. I know that I should sell my worst investment if tencent is better but how does one compare/rank stocks?
Maybe try to quantify downside and upside and asses probabilities/knowing your conviction?
What’s you take?
It's a tough and quite personal decision. Theoretically selling the worst investment is the best thing to do, but harder to implement in practice. And as Pabrai says, the mistress always looks hotter than the wife, but isn't necessarily!
we
40% pltr 25% goog 15%Amzn 20% everything else
Do you still believe in baba with the fear in Chinese stocks?
Be greedy when others are fearful
Recording a podcast with After Dinner Investor this weekend to go in depth on this!
I have 40% of my net worth in BABA and
I am still hoping china stocks keep crashing :))
I'm probably a bit demented. I like volatility.