Recency,Dividends,Individual Stocks
Posted: Mon Oct 18, 2004 4:49 am
The recent 15 yr runs - broke one of my old saws - my mental 4% dividend breakpoint.
Another related queston - over the last twenty years or so, I've seen curves comparing when the number of individual stocks owned makes your portfolio behave like an index - usually the S&P 500 nowadays.
I've seen numbers as low as 8 stocks capturing more than 80% of the behavior. 15-20, 25-30, also pops up a lot. Bernstein's 15 Stock Diversification Myth got a lot of response on the other board a while back. I've seen articles to the effect owning individual stocks in 'some # ' gives you an 'expense free mutual fund'.
I gots 40 DRIP dividend stocks not particularly diversified, not equal weight ($ or share wise), bought at different times over 15 years.
So - should I bother to look for a benchmark index? What would it be? What could it tell me? I suspect - but don't really know - that I'm sensitive to general interest rate movements - move than the general market. Is my optimum holding 8 stocks, 15, 30 for a dividend strategy?
BTY - I also don't rebalance.
Another related queston - over the last twenty years or so, I've seen curves comparing when the number of individual stocks owned makes your portfolio behave like an index - usually the S&P 500 nowadays.
I've seen numbers as low as 8 stocks capturing more than 80% of the behavior. 15-20, 25-30, also pops up a lot. Bernstein's 15 Stock Diversification Myth got a lot of response on the other board a while back. I've seen articles to the effect owning individual stocks in 'some # ' gives you an 'expense free mutual fund'.
I gots 40 DRIP dividend stocks not particularly diversified, not equal weight ($ or share wise), bought at different times over 15 years.
So - should I bother to look for a benchmark index? What would it be? What could it tell me? I suspect - but don't really know - that I'm sensitive to general interest rate movements - move than the general market. Is my optimum holding 8 stocks, 15, 30 for a dividend strategy?
BTY - I also don't rebalance.