Q: Thanks for all of the great information you provide!
I have been fortunate enough to follow your information and belief in these three companies. I'm sure I am far from alone in having them make up a relatively large percentage of my portfolio due to their recent performance.
Should these 3 be considered separately or do I need to combine them as a percentage of my assets. I'm certain bad new for one will bring down the others at least temporarily but can they act on their own?
Thanks as always
Richard
I have been fortunate enough to follow your information and belief in these three companies. I'm sure I am far from alone in having them make up a relatively large percentage of my portfolio due to their recent performance.
Should these 3 be considered separately or do I need to combine them as a percentage of my assets. I'm certain bad new for one will bring down the others at least temporarily but can they act on their own?
Thanks as always
Richard
5i Research Answer:
We would be comfortable having a large exposure, but certainly if one experience problems it would impact sentiment and valuation of the others. Much depends on the nature of whatever problem might arise. An operating or financial issue at one might not be so impactful. But managment misconduct or something like an accounting issue at one would certainly scare investors of all three. So, we would certainly 'eyeball' one's total exposure and keep it within reason.