Since I came out of university, I have been mainly accumulating wealth through active stock investing.

The topic of how concentrated should your stock portfolio be, or how diversified is a question that have been asked a lot. By both those who wish to learn and those who are experienced.

When we are experienced, we want to understand how others do it, versus how we ourselves do it.

So here are my personal rules.

  1. I am at the tail end of the accumulation stage, which means there will be limited capital being injected
  2. I am to be diversified holding at least 10 to 15 individual assets/stocks
  3. There can be asymmetrical positions, where some are larger than others, this will depend on conviction
  4. My Psychological Fail-Safe Point is about 10-13% of my net worth. I don’t wish to see more than $100,000 loss due to a single impairment that happens suddenly …