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
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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).

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Dixons Carphone PLC131.30 GBX-1.43
Pennon Group PLC1,220.00 GBX-2.01
Ryanair Holdings PLC16.92 EUR1.71Rating
United Utilities Group PLC1,038.00 GBX-2.12Rating

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.

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