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Maximum recommended number of counters to buy from?
edwinmukiri
#1 Posted : Tuesday, August 12, 2014 9:27:57 AM
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Location: Nairobi
Based on the fact that one can not be 100% sure of the trend of shares, what is the recommended number of companies that one should buy shares from for the purpose of spreading risk?

What are the risks of buying shares from so many or few companies?
Bulls make money,bears make money and pigs get slaughtered.
dunkang
#2 Posted : Tuesday, August 12, 2014 9:41:00 AM
Rank: Elder


Joined: 6/2/2011
Posts: 4,818
Location: -1.2107, 36.8831
edwinmukiri wrote:
Based on the fact that one can not be 100% sure of the trend of shares, what is the recommended number of companies that one should buy shares from for the purpose of spreading risk?

What are the risks of buying shares from so many or few companies?

I thought your signature was "A risk taker by birth"?
Receive with simplicity everything that happens to you.” ― Rashi

jawgey
#3 Posted : Tuesday, August 12, 2014 9:43:58 AM
Rank: Member


Joined: 1/13/2014
Posts: 386
Location: Denmark
dunkang wrote:
edwinmukiri wrote:
Based on the fact that one can not be 100% sure of the trend of shares, what is the recommended number of companies that one should buy shares from for the purpose of spreading risk?

What are the risks of buying shares from so many or few companies?

I thought your signature was "A risk taker by birth"?


Laughing out loudly Laughing out loudly .. with that he should actually put everything in one basket
Seeing is believing
edwinmukiri
#4 Posted : Tuesday, August 12, 2014 10:33:21 AM
Rank: New-farer


Joined: 8/11/2014
Posts: 72
Location: Nairobi
jawgey wrote:
dunkang wrote:
edwinmukiri wrote:
Based on the fact that one can not be 100% sure of the trend of shares, what is the recommended number of companies that one should buy shares from for the purpose of spreading risk?

What are the risks of buying shares from so many or few companies?

I thought your signature was "A risk taker by birth"?


Laughing out loudly Laughing out loudly .. with that he should actually put everything in one basket


i don't take risk blindly ... it should be calculated and well informed risk.
Bulls make money,bears make money and pigs get slaughtered.
sparkly
#5 Posted : Tuesday, August 12, 2014 1:39:38 PM
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Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
edwinmukiri wrote:
Based on the fact that one can not be 100% sure of the trend of shares, what is the recommended number of companies that one should buy shares from for the purpose of spreading risk?

What are the risks of buying shares from so many or few companies?


If you are not sure/Confident, buy 10. If a little confident 6. If very confident, max 3.
Life is short. Live passionately.
guru267
#6 Posted : Tuesday, August 12, 2014 1:54:02 PM
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Joined: 1/21/2010
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Location: Nairobi
sparkly wrote:
If you are not sure/Confident, buy 10. If a little confident 6. If very confident, max 3.


Seconded!
Mark 12:29
Deuteronomy 4:16
sizzla
#7 Posted : Tuesday, August 12, 2014 2:51:58 PM
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Joined: 6/10/2006
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Location: Nairobi
Personally i have 10 and only one has displayed -ve returns but is still promising in the long run. However my strategy is buy only and i rarely sell..
Aguytrying
#8 Posted : Tuesday, August 12, 2014 4:24:38 PM
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Posts: 5,040
guru267 wrote:
sparkly wrote:
If you are not sure/Confident, buy 10. If a little confident 6. If very confident, max 3.


Seconded!


thirded!!
The investor's chief problem - and even his worst enemy - is likely to be himself
Othelo
#9 Posted : Tuesday, August 12, 2014 4:26:26 PM
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Joined: 1/20/2014
Posts: 3,528
Any time you are doing more than 3+ serious stocks in your portfolio you are joining the gamblers group!
Formal education will make you a living. Self-education will make you a fortune - Jim Rohn.
Matoe
#10 Posted : Tuesday, August 12, 2014 5:12:10 PM
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Posts: 332
Location: Nairobi
Othelo wrote:
Any time you are doing more than 3+ serious stocks in your portfolio you are joining the gamblers group!


I totally disagree with the above.
In this market there are traders and long term investors and I belong to the second category. I have more than 7 counters in this market and they are all doing fine in terms of profitabily and return on investment.
All that matters is how you choose your stocks
Magnate
#11 Posted : Tuesday, August 12, 2014 5:46:05 PM
Rank: Member


Joined: 11/1/2013
Posts: 257
dunkang wrote:
edwinmukiri wrote:
Based on the fact that one can not be 100% sure of the trend of shares, what is the recommended number of companies that one should buy shares from for the purpose of spreading risk?

What are the risks of buying shares from so many or few companies?

I thought your signature was "A risk taker by birth"?

Laughing out loudly Laughing out loudly Laughing out loudly
No diagnosis,no pragnosis,no pragnosis no profit......Jesse livermore
S.Mutaga III
#12 Posted : Tuesday, August 12, 2014 7:51:02 PM
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Joined: 3/26/2012
Posts: 830
Othelo wrote:
Any time you are doing more than 3+ serious stocks in your portfolio you are joining the gamblers group!

Seconded!! Maximum of 4...past that it is clear you do not know what you are doing.
A successful man is not he who gets the best, it is he who makes the best from what he gets.
YoungMulla
#13 Posted : Tuesday, August 12, 2014 8:32:14 PM
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Joined: 3/14/2012
Posts: 577
Location: Nairobi Kenya
S.Mutaga III wrote:
Othelo wrote:
Any time you are doing more than 3+ serious stocks in your portfolio you are joining the gamblers group!

Seconded!! Maximum of 4...past that it is clear you do not know what you are doing.


Not necessarily, as long as you know how to pick your counters it's not a gamble.It's only gambling if you pick 10 counters with the hope of landing a windfall on some of them.
Before I die - i will touch the sky!!
The optimist
#14 Posted : Tuesday, August 12, 2014 8:43:27 PM
Rank: Member


Joined: 6/14/2010
Posts: 521
Location: Nairobi
YoungMulla wrote:
S.Mutaga III wrote:
Othelo wrote:
Any time you are doing more than 3+ serious stocks in your portfolio you are joining the gamblers group!

Seconded!! Maximum of 4...past that it is clear you do not know what you are doing.


Not necessarily, as long as you know how to pick your counters it's not a gamble.It's only gambling if you pick 10 counters with the hope of landing a windfall on some of them.

Someone here said that overdiversifying is akin to investing on the index. Why would you go for half the fruits in the market when all you needed was a salad.
Tall Order
#15 Posted : Wednesday, August 13, 2014 6:06:30 AM
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Joined: 5/9/2014
Posts: 130
Location: Nairobi
Have categories, counters that you are to invest in the long term and counters to speculate in. You can identify 4 counters for long term and 1 or 2 counters for speculation.
jawgey
#16 Posted : Wednesday, August 13, 2014 9:08:16 AM
Rank: Member


Joined: 1/13/2014
Posts: 386
Location: Denmark
Tall Order wrote:
Have categories, counters that you are to invest in the long term and counters to speculate in. You can identify 4 counters for long term and 1 or 2 counters for speculation.


That's normally my strategy.
Seeing is believing
NinjaTrader
#17 Posted : Wednesday, August 13, 2014 1:21:57 PM
Rank: Hello


Joined: 7/23/2014
Posts: 4
Everyone expects different things from their investments e.g some invest for the dividends, price appreciation, businesses creating new markets e.t.c Therefore the number of counters one investor buys may not necessarily be what you would want to buy depending on your investment expectations.

My advice, first be sure of what you want from the counters you invest in and then you'll be able to narrow down your choices and come up with a number of counters that works for you.
My two centsd'oh!

Bulls make money, Bears make money, Pigs get slaughtered.
target1360
#18 Posted : Monday, August 18, 2014 1:52:31 PM
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Joined: 5/14/2014
Posts: 288
Location: nairobi
MR buffet once had over 75% of his netwoth in GEICO!.
I find satisfaction in owning great business,not trading them
VituVingiSana
#19 Posted : Monday, August 18, 2014 4:21:33 PM
Rank: Chief


Joined: 1/3/2007
Posts: 18,121
Location: Nairobi
target1360 wrote:
MR buffet once had over 75% of his netwoth in GEICO!.
Really? When?
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
target1360
#20 Posted : Monday, August 18, 2014 7:41:37 PM
Rank: Member


Joined: 5/14/2014
Posts: 288
Location: nairobi
VituVingiSana wrote:
target1360 wrote:
MR buffet once had over 75% of his netwoth in GEICO!.
Really? When?


1951! its all over.if you cant find it i l be glad to provide a link!
I find satisfaction in owning great business,not trading them
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