Changing the process (2017)

In the last few years, I have suffered from one major problem: too many positions. The average number of positions that I have held is approximately 15, while my ideal number is 8 — twice as much! My dissonance arises chiefly from the oversight that this was not a number I was overly concerned about. My guiding philosophy was more akin to a collector. Once I decided that I want to own a stock, I would justify buying it and pay no attention to the relative valuation of the stock compared to the stuff I already own.

I have decided to change.

Interestingly, the motivation to change comes from the travel vloggers that espouse minimalist living. One of the actionable advice is to only buy things as a replacement for something you have. In particular, if you want to buy something, you need to throw out something else that you already own. I don’t want to be that dramatic but I would like to have more discipline when buying stocks.

In particular: the maximum number of positions that I will allow myself to have is 10, ideally aiming for 7.

I currently hold: Google, Hikma plc, Berkshire, Facebook, Distribution Now, Altius Minerals, Silver Chef, and Cheesecake Factory.

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