I know some would say that you only need a handful of successful stocks to invest in but I’m not Warren Buffett and I feel more comfortable diversifying.
Little by little I’ve picked up stocks that gave me some satisfaction and a few I’m speculating on. The main sectors, without going too much into the weeds, are Semiconductors, Electronics, Mining, Aerospace and Defense, Energy, Electric vehicles, Robotics, Healthcare and some more but these are the main ones I’d say.
Overall I’ve ended up with 150 names that I’ll probably trim down by a 1/3 in the next few months depending on performance, future prospects and overall how I’m convinced by them.
The thing is I don’t have a simple method to weight them . It definitely would not make much sense to have equal weights.
Market cap could be an option, investing more in bigger and more solid companies and less in the rest… but they are overall all quite big.
P/E ratio is interesting too but I don’t think one should invest more in a company just because it seems undervalued.
EPS is another metric I think should be taken into consideration but again can’t be the main one right?
Do you have a “simple” rule you follow to weight your stocks ?
At this point I’m actually thinking of looking into the detail of an All World ETF and just adjust what I have according to the weights of the etf….