Concentration Or Diversification?

As per Simple Investor SG Facebook Page, we had a very successful "Face to Face, Ask Us Anything" 1st session! We will definitely continue with this kind of event and we hope to see more participants coming for next few sessions!

1 particular topic that day really impacted me and that is "Concentration or Diversification"?

Simple Investor SG keeps only a handful of counters in his portfolio, while I currently hold about 25 counters in my portfolio.

He always explains that he only invest in the top few companies that he determines. The quote he always use is "It is diworsification. Why bother with 7th best or the 8th best company, when you already knew which is your top company?"

He tends to dig deep and find out as much as possible about the company prior to investing. Thus, he will only invest once he determines it is one of the best.

I totally understand and believe in this theory. I had been wanting to do it, at least try to hold on to 15 to 20 counters only. But this require really a lot of conviction in the company that you choose to invest in, and you must also know the company inside-out.

Nevertheless, comparing his returns and mine, I believe this is something I need to learn and practice in 2018 if I really intend to achieve my 30% portfolio gain target at the end of the year.

If you are interested to come for our next Ask-Us-Anything event, do email me and let me know. 

Otherwise if you are more interested about The Ultimate Scorecard or Full Analysis Scorecard, do visit the Fundamental Scorecard website for more information! 

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