We are making a number of changes to the LOTM Ten Under $10 list today. We see opportunities and yet want to limit the number of positions held on the list in order to keep a focus. That does not necessarily mean we are negative on any of the positions on the list but rather we see some combination of timely & higher potential in other companies than the company we are exiting.
Stocks we are adding to the LOTM: Ten under $10
As is our discipline in this public example, we use the same dollar amount – $1,000 – for each position.
NOTE: a better way for scalability of an active portfolio is to limit the number of positions (companies held rather than number of units in each position) and keep a % of the account as your measure for position size. EXAMPLE: 20 positions at 5% in each position. Then work into over-weight positions and under-weight position as you make determinations on the degree of commitment you want to each company. Staying limited to a set number of units of commitment, forces a certain discipline on Continue reading