Does anyone have guidelines stating the max investment that
should be allotted to each sector? I'd appreciate any
suggestions
Mark Robertson on
Focus on growth/size diversification and know that many, many successful investment clubs do not "steer" by sector. As the manager of the Brown Small Company Index Fund said recently, "I've never owned a financial stock. I'm sector benchmark agnostic. I go where the opportunities are." We think this is a great way to think about it.
Does anyone have guidelines stating the max investment that
should be allotted to each sector? I'd appreciate any
suggestions
Jeanne Tieken on
You don't need stocks from ALL the sectors; 3-4-5 sectors would be sufficient for diversification. Just be careful that you don't get "overload" in any single sector--spread the funds around more or less evenly.
Focus on growth/size diversification and know that many, many successful investment clubs do not "steer" by sector. As the manager of the Brown Small Company Index Fund said recently, "I've never owned a financial stock. I'm sector benchmark agnostic. I go where the opportunities are." We think this is a great way to think about it.
Does anyone have guidelines stating the max investment that
should be allotted to each sector? I'd appreciate any
suggestions
Robert Mann on
Lunch Money Investment Club has gone by the guideline of 30% max per sector, 15% value for any one stock, stop buying a stock at 12%, and a 2% minimum for new purchases, if possible.
Bob
On July 8, 2016 at 4:36 PM Jeanne Tieken <jeannetieken@gmail.com> wrote:
You don't need stocks from ALL the sectors; 3-4-5 sectors would be sufficient for diversification. Just be careful that you don't get "overload" in any single sector--spread the funds around more or less evenly.
Focus on growth/size diversification and know that many, many successful investment clubs do not "steer" by sector. As the manager of the Brown Small Company Index Fund said recently, "I've never owned a financial stock. I'm sector benchmark agnostic. I go where the opportunities are." We think this is a great way to think about it.