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Alphabet Inc. (GOOG $320.28)
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Berkshire Hathaway Inc. (BRK.B $511.23)
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Lumine Group Inc. (LMN $29.49)
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Brookfield Reinsurance Ltd. Class A-1 Exchangeable Non-Voting Shares (BNRE.A $67.13)
Q: Hello 5i
I am starting to move from a strong growth approach to a defensive position. I still want growth but a little less risk. I have a more less balanced portfolio and am in my mid seventies. I don’t need the cash and want to avoid dividends. Capital gains instead. I am thinking about increasing my holdings in the stocks mentioned above. What i am trying to figure out is what percentage of total port can I go up to with these. I already hold about 5 % of each. I keep thinking of your recommendation of holding only 5% in each stock. I would like to have more in these stocks for safety reasons. But, is it a good idea to do so? And up to what levels
Thanks as always for your excellent service
I asked a question earlier about percentages of a portfolio some big, stable companies could take. I neglected to add csu to the list. Possible to add it in ? Also, implicid in the previous question, if not clearly stated, is the question of what happens to the percentages of all the other companies, if these take 10 or more percent each?
I am starting to move from a strong growth approach to a defensive position. I still want growth but a little less risk. I have a more less balanced portfolio and am in my mid seventies. I don’t need the cash and want to avoid dividends. Capital gains instead. I am thinking about increasing my holdings in the stocks mentioned above. What i am trying to figure out is what percentage of total port can I go up to with these. I already hold about 5 % of each. I keep thinking of your recommendation of holding only 5% in each stock. I would like to have more in these stocks for safety reasons. But, is it a good idea to do so? And up to what levels
Thanks as always for your excellent service
I asked a question earlier about percentages of a portfolio some big, stable companies could take. I neglected to add csu to the list. Possible to add it in ? Also, implicid in the previous question, if not clearly stated, is the question of what happens to the percentages of all the other companies, if these take 10 or more percent each?
5i Research Answer:
A lot of this relates to investor comfort so it is hard for us to say what weighting makes sense. Typically we find that 10% in a single stock is hard for a lot of investors to handle when volatility comes to the markets. If safety is what is being sought, we are not sure increasing concentration in single names meets the goals here. Even if they are great companies, things can happen outside of their control. Instead, we might consider adding diversification through other names or even through ETFs to limit making a portfolio on a single company or handful of companies.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in GOOG.