Post Category → Concentrated Investing

One of the most important studies shows that less than 5% of companies make all the money.

Less than 5% of companies drive all market returns. Understanding the fact that less than 5% of companies are responsible for all returns above bonds is crucial for investors. Research by Hendrik Bessembinder reveals that 58% of stocks fail to outperform bonds, 38% beat bonds modestly, and just over 4% of stocks drive overall market

Less than 5% of companies drive all market returns. Understanding the fact that less than 5% of companies are responsible for all returns above bonds is crucial for investors. Research by Hendrik Bessembinder reveals that 58% of stocks fail to outperform bonds, 38% beat bonds modestly, and just over 4% of stocks drive overall market… Continue reading →

High Conviction and Concentrated investing is one of the most powerful ways to invest.

High conviction and concentrated investing is a strategy that aims to identify and invest in companies that offer the highest potential for generating Alpha. This approach involves doubling down on an investor’s best ideas with the expectation of achieving above-average returns. A conviction investor holds a firmly held belief or opinion towards their target companies.

What is High Conviction and Concentrated Investing? High conviction and concentrated investing is a strategy that aims to identify and invest in companies that offer the highest potential for generating Alpha. This approach involves doubling down on an investor’s best ideas with the expectation of achieving above-average returns. A conviction investor holds a firmly held… Continue reading →

One of the most important terms in investment is diversification.

Investment Diversification is a portfolio management strategy centred around risk management. Diversification looks to strike a balance between risk and reward by allocating capital to various asset classes to help reduce volatility within the portfolio. By diversifying a portfolio one can ensure positions that perform poorly are countered with other asset classes that outperform.

Investment Diversification is a portfolio management strategy centred around risk management. Diversification looks to strike a balance between risk and reward by allocating capital to various asset classes to help reduce volatility within the portfolio. By diversifying a portfolio one can ensure positions that perform poorly are countered with other asset classes that outperform. TABLE… Continue reading →

What is the best practice for portfolio monitoring?

Investment monitoring is an ongoing process of evaluating the fundamentals of underlying businesses and the performance of your investment portfolio. A disciplined approach to portfolio monitoring is essential. It's not just about logging into your brokerage account and checking stock prices. It's about knowing what you own.

Investment monitoring is an ongoing process of evaluating the fundamentals of underlying businesses and the performance of your investment portfolio. A disciplined approach to portfolio monitoring is essential. It’s not just about logging into your brokerage account and checking stock prices. It’s about knowing what you own. TABLE OF CONTENTS: What is Portfolio Monitoring? Portfolio… Continue reading →