A question that often gets asked by novice investors is: how many stocks should I have in my portfolio. While there are a number of answers to this question on Fool.com here is how I've answered that question. [more]
This was in Monday's IBD: [more]
I was getting pretty sick of logging on to CAPS and seeing my propeller beanie. It's a bit annoying to have pretty decent companies in your portfolio and have such a low score. Or perhaps having a low score is indicative of not having decent companies? I tend to doubt the latter. I made my first picks for CAPS back in October, so this marks my six-month review. For the first time in a while my accuracy is in the mid 50%, although some of my stock scores are barely in the green. I like the make up of my companies a few of which I own in my personal portfolio many others are stocks that I seriously have considered or will consider owning in the future. So here are three lessons I've learned by playing CAPS with y'all.
1. Investing for the short run is way different than long-term investing. To some degree success in caps is measured in the short term. There is nothing wrong with that but I chose stocks for caps the same way I chose them for my own portfolio. That is, are these well run companies I would like to own not only now but 10 years from now. I don't worry about momentum, and I don't worry about short term gain, or as my YES icon attests, I certainly don't worry about a stock dropping. It's hard to stick to your guns when there are over 21,000 people doing better than you. [more]
I'm really confident about 99% of the stocks I have in my portfolio. I have no doubt that in the long run the vast majority of those stocks will flourish. However, in the short-run it's been tough to be stuck with <20 rating and a negative score for such a long time. So...I broke down and did probably the only underperform selection I can make and that's SPY. This is one way to boost the accuracy score! Don't know what took me so long. I kinda like my YES charm but oh well. [more]
Happy Tax Day everybody...ugh! [more]