I have to say RED i like this approach and do the same myself, not as concentrated. About 60% of funds in two stocks, 90% in less than 5, rotate in and out based on what looks over valued or undervalued. I've done 100% growth in two years this way, the gain has been as high as 170% and if my two main holdings play out as expected the gain will go past 300% in three years marked from day 1.
My difference perhaps to you is if a stock starts sliding on no news, and all the FA still stacks up - i.e no new news causes me to reject my original hypothesis, I go back and buy more. To date this strategy hasn't failed me. I am sure there is a time it will. I've done the opposite a couple of times and missed out big time. Sold TLG in low 20s for e.g.
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Last
40.0¢ |
Change
0.005(1.27%) |
Mkt cap ! $79.87M | |||
| Open | High | Low | Value | Volume |
| 40.0¢ | 40.5¢ | 39.5¢ | $14.34K | 35.98K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 60000 | 40.0¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 41.0¢ | 21760 | 1 |
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| Last trade - 15.57pm 04/11/2024 (20 minute delay) ? |
| ARL (ASX) Chart |