I posted a blog on my position ranking based on 2018/2019 Income Generation.
Wealth And Income Portfolios - Position Ranking Based On 2018/2019 Income Generation
I posted a blog on my position ranking based on Position Weight.
Wealth And Income Portfolios - Position Ranking Based On Position Weight
Also posted a blog on my position ranking based on Total Return.
Wealth And Income Portfolios - Position Ranking Based On Total Return
Recently there have been several blog comments about how many stocks to own. Some suggest that 15 carefully selected stocks will "usually" provide enough diversification if monitored closely. For my portfolio, that I intend to support 9 plus me for up to the next 90 years needs to be self sufficient.
I operate under these premises:
1. More money is more better than less money.
2. More dividends or income is more better than fewer dividends or income.
3. More dividends or income, more often, is more better.
4. More stocks for a passive portfolio is more better than fewer stocks.
This blog looks at my portfolios by income generation, position weight and total return in an attempt to identify the top 60 stock positions. The stocks are from my taxable Wealth and Income - 15 portfolio, Roth IRA Wealth and Income - 0 portfolio, and the Traditional IRA Wealth and Income - 32 portfolio. I report my positions monthly and this was my last report.
The questions are if the portfolio is to be only 15, 20, 25, 30, 35, 40, 45, 50, 55, or 60 stocks what stocks should they be?
Drilling down to 60 stocks
|NFLX||NETFLIX COM INC COM|
|MDB||MONGODB INC CL A|
|SQ||SQUARE INC CL A|
|BA||BOEING CO COM USD5.00|
|PLNT||PLANET FITNESS INC CL A|
|MTCH||MATCH GROUP INC COM|
|HD||HOME DEPOT INC COM|
|LHX||L3HARRIS TECHNOLOGIES INC COM|
|MAIN||MAIN STREET CAPITAL CORP COM|
|AAPL||APPLE INC COM USD0.00001|
|LLY||ELI LILLY AND CO COM|
|FB||FACEBOOK INC-CLASS A|
|MA||MASTERCARD INC CL A|
|ROST||ROSS STORES INC COM|
|MPWR||MONOLITHIC PWR SYS INC COM|
|TTD||THE TRADE DESK INC COM CL A|
|DRE||DUKE REALTY CORP COM NEW|
|DG||DOLLAR GEN CORP NEW COM|
|AZO||AUTOZONE INC COM USD0.01|
|CLX||CLOROX CO COM USD1.00|
|KMB||KIMBERLY CLARK CORP|
|JNJ||JOHNSON &JOHNSON COM USD1.00|
|ZTS||ZOETIS INC COM USD0.01 CL A|
|ROP||ROPER TECHNOLOGIES INC|
|TRGP||TARGA RES CORP COM|
|NEE||NEXTERA ENERGY INC|
|AFL||AFLAC INC COM USD0.10|
|MSEX||MIDDLESEX WTR CO|
|EW||EDWARDS LIFESCIENCES CORP|
|SHW||SHERWIN WILLIAMS CO|
|BIP||BROOKFIELD INFRAST PARTNERS|
|V||VISA INC COM CL A|
|CSCO||CISCO SYS INC COM|
|INTC||INTEL CORP COM USD0.001|
|O||REALTY INCOME CORP (MARYLAND)|
|ADP||AUTOMATIC DATA PROCESSING|
|BLL||BALL CORP COM NPV|
|NOW||SERVICENOW INC COM USD0.001|
|TXN||TEXAS INSTRUMENTS INC COM USD1.00|
|LRCX||LAM RESEARCH CORP COM USD0.001|
|ISRG||INTUITIVE SURGICAL INC COM NEW|
Any data can be very misleading for stock position ranking because of date purchased, the amount of the cost basis, how long I have owned the stock as well as profit harvests for income.
Drilling down to 60 stocks was harder than I thought because these stocks have been bought since 2009, investment amounts were different, time frames different, and profit harvesting different. Many of the stocks shown have done well but some stocks bought recently have done very well in a very short time.
This exercise was difficult knowing that the data may show the stock to be a good one but the data over shorter periods of time will cause maybe some great stocks to be excluded from the portfolio because they could not rack up the value due to heavy harvesting for performance.
Conclusion: It is foolish to force fit a portfolio to a maximum number of stocks because it will exclude many great stocks.