Week 141: Portfolio Allocation
See the end of the post for the current make up of my portfolio and the last four weeks of trades.
I’ve been on vacation and so am a couple weeks late getting an update out.
My portfolio had a big move up, thanks mostly to the movement of Pacific Ethanol and MagicJack. Pacific Ethanol had a one day gain of 67% last Thursday, and is nearly a 4-bagger since I bought in. MagicJack is nearly a double.
But what has really helped is that even before the run-up Pacific Ethanol was my largest position. MagicJack was my fourth largest position.
One of the ironies of writing about the stocks I own, is that what I write about most is often not what I have the biggest position in. The stocks I have the most to say about are the one’s that are on the cusp, where I am constantly debating whether to hold on to them or not. My biggest positions; Pacific Ethanol, Yellow Media and MagicJack, for example, I have written only a single post about. That post states the thesis, and as long as that thesis is valid I don’t have much else to say.
Yet the stocks in my portfolio are far from being of equal weighting. I usually have a lot of stocks. Unless the market is going down, the stocks number at least 30 and has recently approached 40. But most of the positions are quite small, in the 1-2% range. These as starter positions; enough to keep me interested and following the company, but not enough to hurt me too much. If my thesis for these companies plays out, or if, as I learn more I become more comfortable with the idea, I add. If not, if the company materially lags or sometimes if time simply passes and I lose interest in the idea, I drop the position and move on. Read more