This is just my thought process and I wanted it to be recorded down.

In addition to what I wrote in the last post, I had a few more thoughts:

  1. Every Counter Will Drop in a Market Downturn.

When there is “blood on the ground”, every counter will be on a downtrend. The only difference is drop more or drop less. Cash will become the main call option at that point.

  1. Diversify Less.

This is my main problem. I am trying to reduce my counters to have a more concentrated portfolio. I still preferred a portfolio of 15 to 20 counters.

  1. Invest in Great Companies at Fair Prices, not Fair Companies at Cheap Prices.

In order to have a more concentrated portfolio, I have to invest only in Great Companies at Fair Prices. This was stated by Warren Buffett and repeated to me by Simple Investor …