63 - Your Portfolio should reflect your Investing Strategy

Mental Models discussed in this podcast: Concentration vs Diversification Expected Value Probabilistic Thinking Please review and rate the podcast If you enjoyed this podcast and found it helpful, please consider leaving me a rating and review. Your feedback helps me to improve the podcast and grow the show's audience.  Follow me on Twitter and YouTube Twitter Handle: @TreyHenninger YouTube Channel: DIY Investing Support the Podcast on Patreon This is a podcast supported by listeners like you. If you'd like to support this podcast and help me to continue creating great investing content, please consider becoming a Patron at DIYInvesting.org/Patron. You can find out more information by listening to episode 11 of this podcast. Show Outline The full show notes for this episode are available at https://www.diyinvesting.org/Episode63 Not every stock is right for every Value Investor Just because a company is cheap doesn't mean you should own it You need to learn to recognize the types of stocks that appeal to you and your strategy, while at the same time ignoring those stocks which don't work for your strategy.  Focus Areas to Discuss: Deep Value Stocks Quality Stocks Momentum Stocks Growth Stocks Concentrated vs Diversified Portfolios Summary: Portfolio management is a critical means by which an investor implements their investing strategy. Everything flows from your portfolio decisions: including returns, risk, and your general feeling and emotions of investing. Therefore, it is critical to align your portfolio and stock selection with your chosen strategy. Concentrated investors should not be buying deep value stocks. By the same token, diversified portfolios are better able to incorporate coin flip stocks with binary potential and high expected value. Don't make the mistake of building a diversified portfolio with stocks that fit a concentrated portfolio and vice versa.