For those that missed it, Henry Jennings and Marcus Padley spoke at Finfest. Both of these gents aren't everyones cup of tea, and there are some eyeroll moments in there from Marcus where he preaches trying to time the market, but it is well worth a listen.
In what is extremely relevant to this thread, and another thread discussed on Strawman in recent weeks (portfolio concentration vs diversification), the title of this event was titled: chickens don't make money. I am sure you get where both are getting at when they mention this....holding 40 stocks makes it very very difficult to hold life-changing stocks. Further, they go one further -- if you do this, just track the index (I agree). You have to take risks and be different from the crowd. They talk about super concentrated portfolios and encourage it (with caveats) and then tell the story about the 'six-million dollar man'.
A recording of the event can be found here. Highly recommended.
And for what's it's worth, I agree with them. I didn't comment on the other thread, but like Henry and many others, I have what I consider a concentrated portfolio: I currently hold 12 stocks in my satellite portfolio, with 80%> allocation in just six companies. I believe this is the way to go, but as Henry stresses, you've got to do the work.
Interesting we are having this discussion as I'm already trimming out my losers and trying to add on my winners.
However it is hard psychologically to try and add on something going up.
I remember doing a shortlist during the covid pandemic and a few stocks which I sadly never bought included MIN, PME and OZL. And maybe ALU as well.
Instead I went for A2M which was a big mistake. And I bought ALU way too late.
The lesson here is I did not look closely at management and the people within the company, not just the financials, the technology or the product or service they are offering - and so I'm starting to slowly learn this. Honestly I never knew Chris Ellison had such a big reputation in mining which seems to count lots these days in the business world. Wish more was written about him here because he doesn't seem to get much credit.
I'll have a go @Vandelay
My three picks are Audinate, Nanosonics & Pointerra.
I've held these companies on and off for quite a while now, they all seem to have quality management and I think they all have a big opportunity in front of them.
Of the three the only company I've bought recently is 3DP but wouldn't hesitate topping up the others if Mr Market delivered me a juicy opportunity.
After reading the great posts in the "Concentrated versus Diversified" forum thread. It got me thinking and thought it might be fun thought expirement to ask the strawpeople; if you were only allowed by law to own only 3 x company's stock at any point in time, what companies would you own today? In this scenario, you dont have to hold them forever, just what would you hold now, balancing the risk of a 3 x stock portfolio while trying to outperform. (No ETFs thats boring)
I think I'd go with Google (quality and undemanding multiple), Sol Patts (diversified aussie conglomerate paying a dividend) and AVA (a bit of spice and upside potential)