Cheers mate, a well diversified portfolio would probably have a...

Cheers mate, a well diversified portfolio would probably have a least one stock with a deep red hue.

If you have 10 stocks of equal cost and one is 50% down and the others are still at cost- you would be down by 5%. But, more likely, most of the others would be well up. Well, at least, that is how I reason. I avoid plonking too much on to one stock- like one might do in a FOMO event- then when one falls over the cliff- you can still, if it is appropriate to do so, average down somewhat.

But I revisit the balance sheet and announcements before averaging down- I would not want to pour more money into a falling knife.

But you know all that. These are the basics. Who would endanger retirement savings.

ASB is not the sort of stock for over investing in. It is not a big four bank. It is a risk reward play. It scores another naval contract- big pay day. It goes another year or two without a naval contract- it becomes a falling knife. It has a place in a portfolio.

This is not advice. The above reflects my own risk appetite. I reserve the right to be wrong and without warning.

IMHO DYOR