This week, Milos couldn’t decide on a stock because he didn’t find an investment that he liked and that would have sufficiently diversified our portfolio. That's a good reason not to invest.
People who don’t know which stocks will win in the future – i.e. people like our CEO Dr. Stern – have to follow one rule when investing: never to put everything on one card. That's why diversification is so important.
You can read more about that in our guide, First Steps for New Investors. We have published the composition of our first three portfolios on Google Sheets.The first page lists all three portfolios with all the stocks and the current values.
The fourth page is where things get exciting. It contains evaluations of the industries ("by industry"). And indeed, a large part of our investments are industrial conglomerates. In total, they make up 23% of the third portfolio. Measured against all three portfolios, this is 70% of 300%.
For Dr. Stern, this is not an excessive overweighting of the industrial companies, because there are obviously many industrial companies on the stock market. But it is a good reason to take a break from investing because you don’t have to buy a stock each time you look at the topic.
Tip: You can copy the Google Sheet into your Google account and then manage your own portfolio. You will benefit from the high security of the Gmail accounts. You can get all the updates for free.