Hey everyone,
I’ve been thinking a lot about portfolio sizing, especially in relation to growth vs. stable lower-growth stocks. I originally held about 25 stocks but recently trimmed it down to 15 because I felt that smaller, low-growth positions weren’t really contributing much, I am still young and I can more easily track fewer stocks. A stock growing 7% a year while paying a 1% dividend (which is taxed anyway) doesn’t really move the needle in a meaningful way.
However, when it comes to high-growth stocks—especially those with the potential to 10x—it seems like having a larger number of holdings (maybe 30 or more) could make sense. The logic is that with growth-oriented stocks, you don’t always know which ones will be the true outliers, so a broader net could increase the chances of catching the big winners. On the other hand, too much diversification could dilute the impact of those that do end up massively outperforming.
I’d love to hear your thoughts. Do you structure your portfolio differently depending on the growth potential of your stocks? How do you balance diversification with concentration in a high-growth strategy?