One of the best decisions I ever made personally was making the call to sell up and leave Europe in 2018. Little did I know that a global pandemic was around the corner. But I had been there long enough to appreciate the unbeatable lifestyle in New Zealand.
If you’ve ever made a great decision, it probably comes down to the review. Looking at that decisions from all sides. Then being decisive and accepting the outcome.
Having goals and sharing those goals with your family helps.
Which is why, this week, we’re reviewing our portfolio and allocations. A portfolio that has now pushed out to 26 companies under monitoring.
As you know, our magic number is around 20. So, at any one time, we’ll likely be covering 16 to 30 stocks. Studies show that about 16 holdings may achieve up to 90% of the benefits of diversification. And around 30 holdings, 95%.
This will mean, from time to time, closing successful positions to make room for new analysis. As we have in the past.
Of course, if we see no further potential in a business (which was not the case with the above), we will also close. And quickly.
When it comes to making investment decisions involving companies, the process is not unlike a legal investigation. You gain all the evidence you can. Build a case. And on the balance of probabilities, reach some conviction that your choices will prevail.
There is always risk in the markets. And in businesses.
For now, we are prevailing on our key objective of growth with income.
Here’s the incredible potential that we’re seeing in our portfolio when it comes to energy, property, and technology…
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