There is a general saying that if you take position in more than 5 counters in any market, then you do not know what you are doing.This very true if you want to be an excellent investor. I have given up being one, I rather want to be good investor to make moderate risk and also make moderate gains. That explains why I leverage on real estate.
Good Side Of Excellent Returns
Imagine someone that invested fully on KCB when it was 18 bob it is now circa 30 bob.
This is also applicable to NMG, EABL, Safcom etc
Bad Side
Imagine someone that invested fully in Kenol looking without being aware of the buy out plan.
HF (Housing Finance) Q3 result was not also spectacular
Moderate
In NSE I split my portfolio across 10 - 12 counters spread over all sectors except agricultural.
The different stocks are like my matatus in Kenya realm that bring periodic returns(annually
and mostly bi annually)
That means if one counter "misbehaves" , 90% of my portfolio is intact. It is not an excellent style but I believe it is a good one.
In addition as income is my investment goal, spreading to money counters enable me to have income spread over different times of the year (Interim and finals). That makes my bank account active of dividend incomes by EFT.
I believe everybody can choose or device a
suitable strategy, but what is very important is
sustenability that have an enduring strategy.
It also depends on your age, risk apetite and how smart you are to cut losses where necessary or take profits (if you are speculating on a few stocks).
For me, no counter can hold me into ransom by affecting my portfolio negatively if things go wrong that was not forseen.
The wazua spirit as members is to educate and inform and learn from others within the limit of what we know in any chosen area irrespective of our differences in tribes, nationalities, etc. .