Positions

[Main Street Stock Investor]

I'm sure all investors deal with this differently, but I limit a full position to 3-4% of the total portfolio value. I acquire these full positions in 1/3 increments (1.0 to 1.33% of portfolio value). Sometimes I will hold one or two extra partial position with the intent of trading these partial positions for a profit in the future. It may take one month or one year to build a full position, and I may have traded the stock several times (based on technical analysis) prior to acquiring the full position. When the full position is realized I have acquired the full position at a discount to the current market value and the intrinsic value of the stock. The majority of my holdings are dividend achievers or dividend aristocrats.

I manage diversification by using sector allocation and hold a minimum of 5 stocks in each sector.

M$$I