Ann: Appendix 2A - Exercise of Options, page-18

I'm basically trying to achieve an average 5+ bagger return. You do that by investing in high probability of success 5+ baggers and 10+ baggers.

If you adopt a scatter-gun approach you will end up with lots of small positions. I think the optimal speculative portfolio size is somewhere in the range of 5 to 8 positions. Any more than this and it takes too much time to keep up with the fundamentals.

Thinking about investment probability of success is key.

For mining companies focus on likely economics and margins by looking at similar operations. Grade is just one factor and people get too obsessed by it. You also need to look at strip ratio / mining dilution, processing method, etc, etc together with grade to get an overall picture.

For biotechs understand clinical probability of success at the different clinical stages. You give yourself an edge by investing in the companies that have solid runs on the board.

General thought is that once I achieve my goal I'll reduce holdings across my portfolio by 30-50%. That's because I am invested in companies that I think will be successful long term. Over 10 years those retained positions could multi-bag. Look at NST as an example of what can happen.