Maintain a better Portfolio I

In many market corrections and all bear markets investors suffer heightened volatility in their equity portfolios. Risk, generally associated with variability in returns could manifest as a permanent loss of capital if left unchecked.

When ill health strikes, eating well and losing that extra flab can work like a magic. Gaining some muscle helps as well. If your portfolio has suffered significantly, either due to markets ‘yo-yo’ moves or because of ‘not so smart’ stock selection, it pays well to cut the number of stocks in your portfolio from ‘all the stocks in the world’ to just under 20. It’s not a magic number but it helps in keeping focus and avoiding too many mistakes.