“With each investment you make, you should have the courage and the conviction to place at least 10% of your net worth in that stock.” - Warren buffett.
Thread on Capital Allocation(1/6)
Thread on Capital Allocation(1/6)
Lets take a example.If you put 2-3% of your portfolio to a stock you think is multibagger you won't have impact on your portfolio.(2/6)
Scenario 1 :If your networth is 1000 . If u put 10, that is 1% of your networth , in a stock you have researched and have conviction to be a multibagger even if that 10 goes 5X , your networth will be 1050 , nearly just 5% increase in your networth(3/6)
Scenario 2: Your networth is 1000 and you put 100 into that same stock, which is 10% of your networth .you have same gain of 5X your networth will be nearly 1500. More than 50% jump into your networth.(4/6)
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#investment #Arthavruksha #warrenbuffet #stocks #finance #money #markets #networth #capitalallocation (6/6)
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