Reply To: Earnings, FCF, Assets and Dividends
I run a semi-concentrated portfolio (8-10 holdings), with a pure bottom-up focus. My view on diversification is that a semi-concentrated portfolio generally allows me to control output risk while optimizing alpha. I’m a young investor, with a long-term focus. Thus, in my opinion, risk is not valuation, macro, etc. in isolation. IMO, conviction/solid DD typically mitigates risk, and vice versa.