Ann: Strategic Review Update, page-86

My personal opinion is that a portfolio for someone who is still in the workforce and saving should actually be MORE concentrated than indicated by the Kelly formula, because my opinion is that the owner's output is essentially another financial asset, which should be factored in to any diversification calculations. This is the exact opposite of the financial orthodoxy which always advises greater diversification than would be indicated by the Kelly formula.

I've stuck to this mentality for twenty one years now, and it has resulted in some catastrophic failures along with some spectacular successes. I manage money for both myself directly, my elderly father and my three-member SMSF and the total FUM has increased around 24-fold over that time.

I'm not sure if there have been net savings or net distributions over that time, because while I've been a big saver, my mother was retired and drawing a pension for the whole time, and my father has been retired for more than a decade. So calculating an average return isn't something that I can easily do, but it is certainly well in excess of any local index.

I've scored a bunch of multibaggers over the years including:
RHG group (bought all the way from 40c down to 7c, and sold out at $1.10ish),
Integrated Research (bought at around 30c sold at around $1.40 and bought back in recently at around 30c again),
Infomedia (I can't remember the prices, but I remember six-bagging the investment as a whole),
Compass Resources (bought from about 60c to 90c, sold at $3.60 once it became clear that management were dishonest, subsequently went to zero, so great outcome from a bad stockpick),
Jumbo interactive (can't remember the buy price, but sold at about $13 and it must have been roughly an eight bagger),
Metabolic/Calzada/Polynovo (bought at under 3cps, sold at around 14cps and then watched it go to $3.90 from the sidelines),
NRW Holdings, MacMahon, and Alliance Aviation (bought in the depths of the mining services funk in 2015 and roughly quintupled my money across the trio, but missed out on what would have been NRW becoming a 50 bagger).
Motorcycle Holdings bought in the depths of the COVID panic and sold a few months later for almost triple the price.
Karoon (bought around 80cps, made okay money by selling in Feb 2020 for about $1.10, then bought back the same stock three weeks later for 40cps and sold it once again a few months later at the Feb 2020 price.
And the huge one has been SLX, in at around 35cps and still holding tight!

Fingers crossed that FDV joins the latter list and not the earlier one!