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Maximum recommended number of counters to buy from?
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
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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
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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
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Joined: 1/13/2014
Posts: 398
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
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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
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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: 18,356
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: 289
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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