Sameer’s portfolio+tracking: Requesting feedback

[AVB]

Hi Sameer,

Wish you a very happy new year and all the prosperity with it.

Thanks for such an honest write-up. You know, in more than half a decade in the market there is one idea that I have found the most useful:

Limit your downside and the upside will take care of itself.

Which in practice boils to down efficient capital allocation based on your current level of conviction and the current valuation of the stock.

There is a brilliant framework that @Donald shared more than a decade back in ValuePickr which I still to this date. I have now added the link to it below and I believe it is worth the read.

Towards a Capital Allocation Framework!

It did not take me long to start assigning allocation weights for Portfolio construction. I was ready to create a Concentrated Portfolio for myself! A word of caution as we proceed: This exercise is probably relevant for people who can devote full-time, or a major part of their, energies into actively Investing in Markets. Passive Investors (with full-time jobs) are better off with a well-diversified Portfolio. But even they would benefit from being able to differentiate among their bets! Why…

Thanks!

Edit [02-Jan-2023]: Added link to the capital allocation framework from Donald