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
Wealth And Income Portfolios - Position Ranking Based On 2018/2019 Income Generation - as10675
I posted a blog on my position ranking based on Position Weight.
Wealth And Income Portfolios - Position Ranking Based On Position Weight
Wealth And Income Portfolios - Position Ranking Based On Position Weight - as10675
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.
August And September 2019 Updates To The Wealth And Income Portfolios Composition - as10675
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
| Symbol | Description |
| NFLX | NETFLIX COM INC COM |
| MDB | MONGODB INC CL A |
| SQ | SQUARE INC CL A |
| PAYC | PAYCOM SOFTWARE |
| MELI | MERCADOLIBRE INC |
| LMT | LOCKHEED MARTIN |
| BA | BOEING CO COM USD5.00 |
| TEAM | ATLASSIAN |
| 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 |
| MKC | MCCORMICK &COMPANY |
| AAPL | APPLE INC COM USD0.00001 |
| TOP 15 | |
| NOC | NORTHROP GRUMMAN |
| LLY | ELI LILLY AND CO COM |
| MSFT | MICROSOFT CORP |
| FB | FACEBOOK INC-CLASS A |
| MA | MASTERCARD INC CL A |
| TOP 20 | |
| ROST | ROSS STORES INC COM |
| MCD | MCDONALDS CORP |
| SHOP | SHOPIFY INC |
| MPWR | MONOLITHIC PWR SYS INC COM |
| TTD | THE TRADE DESK INC COM CL A |
| TOP 25 | |
| DRE | DUKE REALTY CORP COM NEW |
| DG | DOLLAR GEN CORP NEW COM |
| INTU | INTUIT COM |
| AZO | AUTOZONE INC COM USD0.01 |
| HEI | HEICO CORP |
| TOP 30 | |
| AMZN | AMAZON.COM INC |
| ABT | ABBOTT LABORATORIES |
| CLX | CLOROX CO COM USD1.00 |
| KMB | KIMBERLY CLARK CORP |
| JNJ | JOHNSON &JOHNSON COM USD1.00 |
| TOP 35 | |
| 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 |
| TOP 40 | |
| PEP | PEPSICO INC |
| MSEX | MIDDLESEX WTR CO |
| CTAS | CINTAS CORP |
| EW | EDWARDS LIFESCIENCES CORP |
| SYY | SYSCO CORP |
| TOP 45 | |
| EADSY | AIRBUS SE |
| SHW | SHERWIN WILLIAMS CO |
| BIP | BROOKFIELD INFRAST PARTNERS |
| V | VISA INC COM CL A |
| CSCO | CISCO SYS INC COM |
| TOP 50 | |
| INTC | INTEL CORP COM USD0.001 |
| BMY | BRISTOL-MYERS SQUIBB |
| O | REALTY INCOME CORP (MARYLAND) |
| ADP | AUTOMATIC DATA PROCESSING |
| SYK | STRYKER CORP |
| TOP 55 | |
| 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 |
| TOP 60 |
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.