Holding Size

I tweeted yesterday about my holding in BOO  (Stockopedia) (Google Page). This is now up 100% since my initial purchase on 15th October 2015.  I then topped up in February 2016, April 2016 and June 2016.

The increase means that Boohoo is now 15% of my portfolio including cash and 17.97% ex cash.  It is not my intention to top slice while the outlook for the company remains the same or improves and even then any set backs would have to be permanent rather than temporary in nature.

This raises the possibility of the stock having a huge weighting in my portfolio.  For example if Boo doubles while the rest of the portfolio increases by 10%, Boo would become 28.5% of my portfolio.  If it goes higher than this, which I believe it will, then there is a prospect of it being 30% to 40% of my portfolio.

I am only aiming for modest returns (in the sense that if I can equal say the FT250 or All Share the journey will have been worth it) over say a 10 year period.  So if Boo can be up 20%/25% over a couple of years then I will happy but (and it is a big but) if it can three, four or five bag over a 5 year period then it can truly transform my investment returns.

My final thought on this for the moment is that if BOO was my business (that is I owned 100% of the stock) I would not be selling out now (to say Amazon) just because my share price had increased 100%, so I dont see the logic of selling out when when I own 0.00363% of the business!

That is all for now but this is probably a subject that I will return to again. Portfolio size, diversification, diworsification and running your winners is something that interests me a great deal.