Yogi's portfolio for long term (15 years)

I don’t feel that you have a fat portfolio. As you are investing in Mid + Small caps heavily and having higher allocation in Pharma and Chemical, it make sense to diversify to reduce risk. I hold a diverse portfolio (My Portfolio) for the mentioned reason.

But if you want to trim you can follow this approach to select the stocks.

  1. Rank your holdings by conviction
  2. Come up with some allocation strategy. Something like
    a. Hold no more that N stocks
    b. Top M stocks allocation should be X%
    c. Top O stocks allocation should be Y%
  3. Let’s say I wish to hold 15 stocks in your portfolio
    a. I would allocate ~50% in my top 5 holdings
    b. I would allocate ~30% in my next 5 holdings
    c. I would allocate ~20% in my bottom 5 holdings
    d. Top 5 would have high conviction bets, Bottom 5 would have watchlist kind of stocks where I would potentially build higher positions in future depending on future earnings.
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