Hi all, I have a number of companies across my portfolio. I was down ~30% average pre-covid and made some good investments to bring it into the green. I sold off a gold stock so the profit from that made me currently under again average, but I have a few 100-200% values. Most of my holdings are speculative in nature. But I'm seeing a strong trend across most of them with very positive news. I have a number of holdings around CHN's holding. An oil exploration company. 2 medical research. A few gold and silver explorers and 2 producers. 1 or 2 sales companies. 1 very small uranium hold. A few lithium/bromine/cobalt/graphite/manganese, etc companies targeting the battery minerals move. Does this seem like a reasonable diversification based on current economical situations? I'm targeting battery materials heavily. I do want to look at shifting some of this into long-term companies and high-dividend-yield, but this is the longer-term plan. Thanks!
i am guessing you are younger and looking 20 years or more ahead given the last two years the future is probably at a pivotal point and that pivot will be outstanding debt and available credit ( and how long cheap credit will last ) if the market plummeted before July ( it MIGHT or might not ) do you have some preferred targets to watch , in my limited experience the worst thing about a crash is there are hundreds of potential bargains ( and twice as many traps ) and you probably can only afford five good moves ( 2011 was different for me , i had some income then and could afford to buy something each week if i found a good target , 2020 i had some cash stock-piled but limited income but plenty of time to watch and wait )
Let's not beat around the bush, this is not a diversified portfolio at all. It is a concentrated bet on ~10 speculative companies in specific sectors that might pay off big time if you can get a 10+ bagger or might amount to nothing. Historically around 1.6% of companies have explained all returns above a risk free short term bond portfolio. You are trying to pick a needle in a haystack which carries significant risk of underperformance.
as long as searching for that 10 bagger doesn't become addictive i prefer learning about this side by participating in tipping competitions but if the OP can do better than break-even in this area then good for him/her my time-frame didn't have time to wait for a 20 year window to see the results of such a strategy , if the OP has and becomes skilled at selecting high growth stocks the result could be very satisfactory like those buying in the 2000 cash and holding the solid winners
yes i agree if the OP were to add EXTRA companies at opportune times ( rather than be forced to exit one to buy a new holding ) yes the result could be very spicy . but age and income play a big factor on if this is suitable for the investor , battery tech might need another 10 years to prove they are the promised nirvana ( for example )
I'm not aiming for a 10-bagger from any stocks, at least not for quite a few years. I have one company I'm contemplating taking my profit from. Any profit I take from the market is now going into stable high-growth companies that have rising PE, good RoE, RoA, and ROC. Currently have 2 in the portfolio. Most of my companies have solid resource reserves, and the others are ticking all the boxes that de-risk their project. But yes, I am looking to transition profits to stable high-growth companies. Ultimately, I have a number of years, so over time I will be transitioning. But with Biden committing to provide funding to build the EV industry in US, at least one company that have their lithium resource (just increased their estimated resources by 250%) and bromine resource should fare well.
not always for instance Wesfarmers took-over Kidman Resources , after Lynas rejected Wesfarmers offers sadly the Kidman Resources holders were only given cash , missing any future upside iwould imagine several others have struggled for funding ( and development approvals )
