Diversification: NEA has been 70% of my portfolio for 3 years....

First 9 Last

Share
Profile

Follow
rumandcoke

76 Posts.

9

16/02/19

11:43

Post #: 37457559
Share

Originally posted by Archiael: ↑

If I was in your position and hypothetically maintained a positive long term outlook on this stock but was conscious of portfolio composition, I would take a third (or a quarter) of the profits and let the rest run without looking back. Be glad that you have locked in some of your profits, and don't regret it as you should see it as a trade off in terms of risk/reward. I did the same thing with ALU and sold a third at $15 (entry price $6) - psychologically I have no regrets as I followed my rule and was disciplined even though the price is now around $27.

Currently NEA is about 12% of my portfolio (of 20 stocks), my entry points were $1, $1.4, and $1.7
Hypothetically 1/2 of any portfolio would be above my risk appetite, diversification is key! Anything nearing 20-25% of my portfolio I would start taking rebalancing seriously, but instead of selling I would buy up on my other high conviction stocks to reduce the % of NEA.

If I felt all my other high conviction stocks were fully priced and I didn't want to enter, well that's a great problem to have!!
My view is that you should always have an exit price, or a price where you can take some of the profits and let the rest run - obviously this may change due to significant market announcements, but as an investor you will become much more disciplined in your approach.

Not personal advice of course... everyone is different and you should always seek unbiased professional advice if you're unsure!

Expand

Diversification: NEA has been 70% of my portfolio for 3 years. great business. very low risk.

im just not smart enough to find another idea like NEA at 50 cents. i wish i could. Buffet says you can make a fortune with 1 very good idea a decade. i think he's right.

NEA Price at posting: $2.39 Sentiment: Hold Disclosure: Held
5 Upvote

0 Great analysis

Reply

Top Stories

LPE

Sales growth pushes Lovisa's fortunes (and shares) upwards

PYC

Scientific conference spotlights PYC's work on blindness disease treatment

MIN

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

SIG

Dale Gillham's weekly wrap: Sigma-Chemist Warehouse merger creates pharma powerhouse

GRL

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

WC8

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

HotCopper Highlights: Your most watched stocks for Week 47, 2024

DUI

Panic, paranoia, and gangland politics: HotCopper users react to Dubber's missing $26M

Week 47 Wrap: HotCopper users' most watched; Brent lifts on Putin's scary letter; RFK dents CSL

BTH

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

First 9 Last

Add NEA (ASX) to my watchlist

Diversification: NEA has been 70% of my portfolio for 3 years....

Top Stories

Sales growth pushes Lovisa's fortunes (and shares) upwards

Scientific conference spotlights PYC's work on blindness disease treatment

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

Dale Gillham's weekly wrap: Sigma-Chemist Warehouse merger creates pharma powerhouse

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

HotCopper Highlights: Your most watched stocks for Week 47, 2024

Panic, paranoia, and gangland politics: HotCopper users react to Dubber's missing $26M

Week 47 Wrap: HotCopper users' most watched; Brent lifts on Putin's scary letter; RFK dents CSL

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

Featured News