written by reader Hi Travis, % portfolio question

By vjhiii, February 11, 2021

First let me say I really appreciate your work. I have been a member for a few years and basically started investing at that time. My portfolio has done well, most of it is based on your personal trades and a few others from the informative comment threads. I don’t execute everything, maybe a third of what you do mostly due to funds available and my personal interest in a market segment. My question is regarding percentage of portfolio specific to my stock portfolio. I don’t believe any of my purchases was worth more than 3 or 4 percent of my total holdings at time of purchase. However, I now have a few (GAN, PACB, ACUIF) that have grown into the mid teens in terms of percent of portfolio. I noticed your largest stock % of portfolio is under 7 percent. I was wondering if you let % of portfolio dictate your trading, is there a specific “weight” that triggers a personal rule of risk management. I currently own 23 stocks and do try to spread risk considering market segment. I guess I would like to know if a single stocks percentage, regardless of how heavily you are weighted in that market segment with other related stocks, might make you sell (or buy). Happy to hear your thoughts and others regarding this subject.

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