When I first seriously thought about building an investment portfolio, I had a lot of questions that came to my mind. What I wanted was to build a portfolio that would help me build a sizable capital over a period of time. The plan was that I would add to the portfolio periodically and build up positions. The time-frame that I had (and still have) was around 15 years.
The questions at the top of my mind were:
- How many stocks should the portfolio hold?
- What is the maximum percentage that a single stock should be within the portfolio?
- When should I sell? Should I have target prices?
- How much cash should be there in the portfolio?
- Should I have stop losses?