Hobson: A New Stock for my Portfolio

THE WEEK: Rodney Hobson says investment rules are made to be broken and that includes the notion that you should aim for a portfolio of 10 stocks

Rodney Hobson 27 May, 2016 | 9:12AM

Having built up my portfolio to 16 stocks I would always prefer to add to existing holdings rather than add a new company but one should avoid being pedantic about investing. Rules are made to be broken and that includes the sensible notion that you should aim for a portfolio of 10 stocks: few enough to keep an eye on but wide enough to give diversity.

If Michael O’Leary can’t predict oil prices, we lesser mortals should settle for taking the best shot at investing as we see it today 

However, at the moment the successful companies I hold look fully priced while the failures do not tempt me to throw good money after bad, so I am keeping an open mind. Thus I felt drawn by results this week from water and waste disposal group Pennon (PNN).

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Dixons Carphone PLC115.70 GBX-1.62
Pennon Group PLC966.80 GBX0.27
Ryanair Holdings PLC15.59 EUR1.07
United Utilities Group PLC918.20 GBX2.45

About Author

Rodney Hobson

Rodney Hobson  is a columnist for Morningstar.co.uk and author of several investing books, including The Dividend Investor and How to Build a Share Portfolio.

Audience Confirmation


By clicking 'accept' I acknowledge that this website uses cookies and other technologies to tailor my experience and understand how I and other visitors use our site. See 'Cookie Consent' for more detail.

  • Other Morningstar Websites
© Copyright 2020 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies