I think the concentration topic depends a lot on whether you have constant cash flows or a "lump-sum" portfolio, where no cash flows are coming.
I agree, that concentrating (even in just 1 stock) makes a lot of sense for a "cash flow" scenario. But in this case you have an advantage of "temporal" diversification. Even if you invest 100% of current cash flows, it is still only a part (let's say 5-10%, or even less) of all your future cash flows. Even if you are wrong, you can easily recover from it.
While in a "lump-sum" scenario investing 100% in 1-2 stocks and being wrong will destroy your portfolio forever.
I've been having a lot of fun selling deep o-o-t-m puts on $MSTR- the premia are insane. But this requires rolling week by week. I almost had to buy this turkey once during a vertiginous drop.
💯🎯great piece!!
Thanks, JP!
Would you be willing to comment on this piece (short TPL)? https://www.valueinvestorsclub.com/idea/TEXAS_PACIFIC_LAND_CORP/3937619786#description
Thank you both. I appreciate you taking the time for this
No problem, YB.
Well done. I agree. All the best to you and everyone this year!
Thanks Derek.
totally agree!
I think the concentration topic depends a lot on whether you have constant cash flows or a "lump-sum" portfolio, where no cash flows are coming.
I agree, that concentrating (even in just 1 stock) makes a lot of sense for a "cash flow" scenario. But in this case you have an advantage of "temporal" diversification. Even if you invest 100% of current cash flows, it is still only a part (let's say 5-10%, or even less) of all your future cash flows. Even if you are wrong, you can easily recover from it.
While in a "lump-sum" scenario investing 100% in 1-2 stocks and being wrong will destroy your portfolio forever.
I agree, going all in in a single trade could go very poorly!
Hey team, I’ve sent you a DM with a great proposal for your newsletter. Would love for you to take a look when you get a chance!
I've been having a lot of fun selling deep o-o-t-m puts on $MSTR- the premia are insane. But this requires rolling week by week. I almost had to buy this turkey once during a vertiginous drop.