WHAT ARE THE BEST STOCKS TO BUY ?
I managed private share portfolios for several wealthy individuals and we had small, medium and large cap portfolios each tailored to the individual’s risk profile. The problem with this approach is it might suit each individual investor but for the manager it becomes cumbersome and time consuming. So we decided to create 2 model portfolios one for small caps and one for medium/large blue chip stocks. Both approaches did well over time assuming the investor let the manager invest how he deemed fit. However this was not always the case though and many times clients wanted instant returns or to include a tip on a share that they had heard from someone else into their portfolios. Mostly the prices of the shares on these tips went south and affected the whole portfolio’s return. So now to me it doesn’t make sense to half manage a portfolio and be forced to sell out of a share just because it had a bad quarter or buy into a share just because it is the latest thing. Investing should be for the long haul.