Simply thoughts, after I read some remarkable person like you Saul and others even my friends. I found something interesting. It’s just huge part of portfolio in some major stock, like 4~5, took around 70% portfolio. And others 1-5% what we called low conviction stocks maybe have 5-7. It’s reminder me to rethinking back our old portfolio allocation rules. Like one stock not as big as >15%. It’s because we keep group thinking again? Or just the while the market is difficult for growth stock again?
BTW great article as usual, hope all of our growth tracker can have a nice performance next 8 months.
In my case, it's a balance between how much money I put into a stock and letting winner win. I clearly have one outlier way above 15% in CRWD. However, I haven't bought shares in quite a while and have a cost basis of ~$72. So, I didn't BUY 28.5% worth of CRWD. It has GROWN to 28.5%. That's a big difference. In fact, I trimmed very small amounts a couple times this month when it hit 30% of our portfolio. Does 28.5% make me uncomfortable at times? A tick I guess, but not enough to sell much more. CRWD is doing incredible things, and I expect another big quarter. And again, CRWD has earned that big allocation pretty much all by itself.
Right now, I'd lay out my rough CRWD plan as follows:
1) Keep trimming to build out other names if it keeps bumping 30%.
2) Be willing to cut it SEVERELY at the first sign of slowing business. I didn't do that with ZM and learned a lesson. I don't need to be told twice. Until that happens though, I feel CRWD deserves to mostly be left alone.
I give myself that limit as well, it’s 25%. And already trimmed several times. And also I can say CRWD totally understand what’s investors want, and just provide as much as possible. Actually I’m not satisfied with last ER numbers, that’s for me as a “finished “. Like homework for my daughter XD. DDOG is another example for both of us, even Saul. I remember last time I feel this kind of thing was AYX. Oh what a sad story.
Totally agree, and it's easy to see how that can become a slippery slope. As I said in the recap, I'm feeling a little drift in some of my names. I'd like to tighten that up. Companies will have to double-prove they deserve their spot this upcoming earnings season.
Hey StockNovice, great monthly review and it’s been a tough year for growth stock investing. It will turn around at some point. I hear you on the portfolio management. Like you, I have started to introduce more positions and it is so easily done because there are so many good companies out there. I have found being very clear on what the macro trend I am investing in, finding the top stocks in that trend and asking what the stock brings that is not already in the portfolio. It’s not easy that is for sure!
Simply thoughts, after I read some remarkable person like you Saul and others even my friends. I found something interesting. It’s just huge part of portfolio in some major stock, like 4~5, took around 70% portfolio. And others 1-5% what we called low conviction stocks maybe have 5-7. It’s reminder me to rethinking back our old portfolio allocation rules. Like one stock not as big as >15%. It’s because we keep group thinking again? Or just the while the market is difficult for growth stock again?
BTW great article as usual, hope all of our growth tracker can have a nice performance next 8 months.
All best
Rick
Great question, Rick.
In my case, it's a balance between how much money I put into a stock and letting winner win. I clearly have one outlier way above 15% in CRWD. However, I haven't bought shares in quite a while and have a cost basis of ~$72. So, I didn't BUY 28.5% worth of CRWD. It has GROWN to 28.5%. That's a big difference. In fact, I trimmed very small amounts a couple times this month when it hit 30% of our portfolio. Does 28.5% make me uncomfortable at times? A tick I guess, but not enough to sell much more. CRWD is doing incredible things, and I expect another big quarter. And again, CRWD has earned that big allocation pretty much all by itself.
Right now, I'd lay out my rough CRWD plan as follows:
1) Keep trimming to build out other names if it keeps bumping 30%.
2) Be willing to cut it SEVERELY at the first sign of slowing business. I didn't do that with ZM and learned a lesson. I don't need to be told twice. Until that happens though, I feel CRWD deserves to mostly be left alone.
I give myself that limit as well, it’s 25%. And already trimmed several times. And also I can say CRWD totally understand what’s investors want, and just provide as much as possible. Actually I’m not satisfied with last ER numbers, that’s for me as a “finished “. Like homework for my daughter XD. DDOG is another example for both of us, even Saul. I remember last time I feel this kind of thing was AYX. Oh what a sad story.
I have too many stocks. Need to trim. The environment makes one look for too many try out positions.
Totally agree, and it's easy to see how that can become a slippery slope. As I said in the recap, I'm feeling a little drift in some of my names. I'd like to tighten that up. Companies will have to double-prove they deserve their spot this upcoming earnings season.
Hey StockNovice, great monthly review and it’s been a tough year for growth stock investing. It will turn around at some point. I hear you on the portfolio management. Like you, I have started to introduce more positions and it is so easily done because there are so many good companies out there. I have found being very clear on what the macro trend I am investing in, finding the top stocks in that trend and asking what the stock brings that is not already in the portfolio. It’s not easy that is for sure!