What limits do you set? E.g. max position size for a given stock, or sector.
Buffett said “When it’s raining gold, reach for a bucket, not a thimble” but then on the other hand, when you don’t have as much money as Buffett, you might not want to risk a bucket.
I recently made investments which did well, but I limited them to 20% of my portfolio. I sometimes think, it was a great opportunity, why did I not go to 40% or 60%?
I have different upper limits for purchases:
Asset allocation goals as shown for FC 2026:
I let it run and look at the general asset allocation once per year or adjust down to my limits when the market is red hot. Currently 3 single stocks are above 1%, which might soon get the treatment. Also, I have turned some commodities to cash recently.
Why lottery with higher limit than single stocks? I have a soft limit of 4% on single stocks.
Have clarified in my post
