They had to sell quite a bit to raise enough cash to then cover the next several years of cash needs for our hypothetical retiree who all of a sudden is now living on this portfolio. 2, remember that those six traits of Rule Breaker companies often are reflected in the kinds of companies that I buy and put into my portfolio. 2. Even though you started with a fair starting line, if one of those horses charges ahead and races around the track 150 times before many other horses have finished once, you can imagine that you end up with a lot of waiting in that particular stock. So again, portfolio principle No. If you have a sleep number of one, that means you have a large portfolio. I love my sugar sodas, but I'm pretty sure I shouldn't be drinking them every day, and indeed, I don't. I hope you know No. The list goes on of the repetitive questions that we've answered, not just again here on this podcast every month in mailbag, final week of every month, coming up in a couple of more weeks, not just here on Rule Breaker Investing, but certainly so many times on our radio show back in the day on NPR right through to member meetings, all kinds of questions around people's portfolios. They're massively diversified, owning positions in hundreds or thousands of companies, like the Vanguard Total Market Fund. I'm going to ask for a little bit more, horsey fun fair once again, because we're going to stick with this analogy. So, it's the wrong question, how many stocks should I have in my portfolio? How much would you like to allocate to it? By now, you should know what Rule Breaker companies look like. So in a world that so often is looking at numbers and not percentages, I feel as if we're often guilty of doing the same when we talk about our portfolio, you really should have the percent view on your brokerage statement page or your fool.com watch list, you should be looking at the percentages that you are allocating each of your stocks. In a lot of ways, I think our company, The Motley Fool, has done yeoman's work trying to help people figure it out, but maybe we haven't been prescriptive enough at a high level. Cut apart and use these cards to teach students how to flip vowel sounds from Short to Long and Long to Short. It really does work here in 2021. 0000020719 00000 n Rock out with the Rule Breakers as they explain how diphthongs make it so words that are spelled differently can sound the same. Sometimes it makes a lot of sense to look at the world and say, "Do we need to change our purpose?" Over the course of time, you see a better world as each of those companies prosper. So, I think it's a great idea to state the purpose of your portfolio, maybe even name your portfolio, if you haven't already, with the name of your purpose so that you don't forget, and that's something else I wanted to say. Why? I sure hope that the act of making it and what you will do with your money from your portfolio, dear listener, will create a better world for me, your kids, and you. He points out another example you said by selling a bit of Netflix each time it got more than 15% of the portfolio. The best way you'll recognize that you should do that or need to do that is that you've been conscious about it from the very beginning. AOL went on in the next six years to go up 150 times in value. I don't hold money out of the market thinking, well, I am going to be really opportunistic when the market drops. 0000003796 00000 n Turns out, starting near the inside is a small advantage. 0000224072 00000 n 1 does have an advantage over a horse in gate No. That is a number that I once rocked and I'll tell that story in a second. 0000028752 00000 n trailer Jim also said, be slow to sell. 3, and hold onto this horse racing analogy because a couple of more principles will be returning right back here. 0000123158 00000 n By the way, to close and to return this principle, review your allocations quarterly, not daily, not weekly, not even monthly. In particular, this week's show has come about, because my observation from having been a Motley Fool employee for 28 years now, is that one area that we probably haven't addressed quite enough, which has caused lots of mailbag questions on this podcast, and beyond just this podcast, many members' services questions that will get phoned in every day. 10 or 17. Is this your nest egg that you're growing very carefully, I hope, in concert with your spouse or partner? Jan 11, 2018 - Explore Paula Platt's board "Rule Breakers..." on Pinterest. As your sleep number starts dropping rightfully so in so many cases, you're going to start diversifying away from those big winners. 0000059313 00000 n I say things like dip by on dips. That stock is probably more than 80% of my net worth. 2, will there be money coming in or not? I hope that the public company whose name is Sleep Number doesn't come after me for this one. But, the rare times that I've dreamed up and deployed lists of six Rule Breaker principles, which I spoke to at the very top of the show, the rare times those happened, I think deserve a double underline. Maybe the most basic, most repetitive question that I've gotten, not just for six years of Rule Breaker Investing email bags, but for years and years before that and I understand why you will ask it is, how many stocks should I have in my portfolio? Now, I can't quite imagine what that would be like on a Sleep Number mattress, you are certainly sloshing around. You should not ask how many stocks I should have in my portfolio because what I'm saying back is, it's not about the numbers, it's about the percentages. 0000003947 00000 n 3, this is the build principle. In this episode of Rule Breaker Investing, it's time to look at what a Rule Breaker portfolio looks like, how it is built, and how it is stewarded. The six traits that we looked for in stocks that caused us to recommend the companies that we do. I'm asking you, do these help? I have about 54 stocks. Now the reason has worked so well for investors and for portfolio builders is because it goes opposite what most people's instincts are. Or, ''Should I add new money to existing stocks, or should I add it to new ideas that you guys have just told me about?'' The Handyman job of Silent E in All About Spelling includes words that would otherwise be a “rule-breaker” or exception. So to the first one, I say, well, put every stock at its right allocation. 4, No. I think it's the most relevant new thing that I can bring you. %%EOF What is the purpose of your portfolio? In an age where increasingly, you can buy fractional shares of many different stocks, particularly here in the U.S. I truly believe that Rule Breaker Investing can work for both. 0000078726 00000 n "Hive" and "Shiver" both For me at its maximum, it was right around 80. Jim says, if you're lucky enough to have one of them, don't be afraid to milk it for cash. h�bbr``b``Ń3���0 N�� They'd accumulate that money over a month or a quarter and then they would invest it and just keep investing it in. I will end as I began, this is a draft. 0000003071 00000 n 0000123237 00000 n Percentages, I've said in headline material in the past, not points. The position by the way, is still, to this day, quite large. The Odyssey portfolios, and then the Phoenix portfolios. I should have roughly that number of stocks. My five stock samplers, which are basically mini portfolios, are always equally weighted, fair starting lines. 0000019476 00000 n Whichever party you're in, I'm not in either one, I think it's a funny way of reflecting on the change in the New Year. 0000004713 00000 n Everything is connected. Does this help? 0000002649 00000 n Let's think of two quick 50 stock portfolios right now. Some of them had a great year last year, some of them might be well behind the market, but you should be able, again, to look up and down that portfolio and feel kinship, excitement, and belief in every one of those companies, because darn it, if your capital succeeds with that company and that company grows in the world, let's make sure it's a better world. Principles No. 3, fair starting line. Nope. I would say even more of the maintaining, which can sometimes sound like a boring word. While there are many ways to beat the market, my favorite and certainly the Rule Breaker way is to pay attention to the six company traits that guide you to the right companies. I pay a lot of income taxes every year. I actually think he said we're still in 2020, maybe post inauguration day, the New Year begins. That's why I'm so focused on the purpose of the companies that I'm invested in. No. I'm sure there's probably some other companies that just signed their name and aren't doing much at all. My answer is, the company traits and the investor habits answer those questions for you. Sleep numbers on index funds approach one in many cases, and that is obviously a perfectly successful way to invest. They believe in harsh punishment for rule breakers. These were about you and your behaviors. He said if you're lucky enough to have a solid winner, don't be afraid to milk it for cash. It certainly will occasionally color what I'm saying here. Noun . Well, without further ado, I say let's get started. Fool on! rule +‎ breaker. Here's a list of similar words from our thesaurus that you can use instead. In Motley Fool Rule Breakers, at Motley Fool Stock Advisor, if you take all of my active stock recommendations right now combined, you have about a list of 240 stocks. 0000163248 00000 n Then the six investor habits that have you investing properly in those companies, letting your winners run, adding up not doubling down. How many stocks, the question goes, should I have in my portfolio? For some, they might ask, well, what do you mean to invest through the whole race? At no point have I ever said, here are the five stocks, but here is the one that you should really load up on. So, if you're wondering how to make your portfolio reflect your best vision for our future, which companies exactly you might want to go about selecting, I refer you back to our six Rule Breaker company traits. 3, fair starting line, you heard our music at the beginning. But then comes day two and year two, and decade two, and the list goes on. He said he reviewed that line of mine once again and, maybe it was a new year thing, he's changed how he thinks about investing, which will influence his funds and the advice that he gives. 0 Sunday, April 10, 2011 I've never rested too comfortably on those assumptions. If you thought they were any good, then they're probably seeing those problems too and are hopefully working to correct them. bad boy. Well, very similarly, I'm saying that with the number of stocks in your portfolio, percentages not numbers. The way we did it, I think the portfolio started with $500,000 of real money. I also want to mention that dramatic events happened in Washington, D.C., the city of my birth last week. Enjoy! For many students, the “air” sound of the AR in square is close enough to the long A sound that they want to … 0000114325 00000 n 4. Examples include st uff, gr ass, f … Those six investor habits, which you can go back and relisten to anytime through this podcast, those six habits are not again exhaustive. Before we get to the important topic for this week's podcast, six Rule Breaker principles for your portfolio, I do want to flag next week's podcast. rulebreaker (plural rulebreakers) One who breaks a rule. If I'm 20-years-old, I should start with the 20 stock portfolio. It was much brooded about in the headlines, what the Business Roundtable had said, and certainly, as it's an umbrella organization and a lobbying organization for big business, I'm sure that there are some companies that were truly already doing that, and many others that are purposing toward doing it better. I will be sharing some pointers and tips from him. See in a Guided Lesson We did it by the way, with quarterly withdrawals. The Phoenix portfolios, we did really well with that, but how do you invest that? endstream endobj 308 0 obj <>/Filter/FlateDecode/Index[69 154]/Length 27/Size 223/Type/XRef/W[1 1 1]>>stream The Business Roundtable made waves a couple of years ago when it acknowledged what conscious capitalists have been working toward for more than a decade when it stated that the purpose of business is no longer merely to reward shareholders or maximize profits, the purpose of business is to reward all stakeholders. I always try to pay as little in capital gains taxes as I can. Years later again, well, here we are. No doubt, we've spoken in speeches at Fool Fests about these topics and the topic of how to build and maintain a portfolio will always be timelessly important, but I don't think we've probably addressed it in a way that everybody can walk away with some principles and learn from. 0000002827 00000 n 0000231965 00000 n There's something about the numbers six that I like. Some say rules are made to be broken, but the reality is that rules (like social conventions) are meant to be followed and/or complied with. To close, before we move onto No. The first was published in 1998 and it was of course, the six Rule Breaker company traits. 2. Now, often we have a halftime, we bring in our marching band or have a folly ceremony of some sort when I do this podcast, but my producer, Rick Engdahl, points out to me, horse races do not have a half time, so let's keep moving. So for many people, I'm quite sure the new year will actually begin upon a peaceful transition of power as this happened every century in our nation's history. My newest one comes next week. 5, the reason we established our sleep number is so that you abide by it, so that if the stock does start to cringe out of control in the best way, that you're disciplined and you recognize that you might not sleep so well with that amount of allocation and so piecemeal, you can sell that position down to your sleep number. Jim said, first of all, the team approach works quite well. One who breaks rules. I think the biggest dividing line in a world in which everybody tries to throw things into one of two buckets-. I have to pay some slip service here to the Gardner Kretzman Continuum. I think four times a year is a great time to spend a little time, put an appointment in your calendar, maybe it's on a Saturday afternoon. Lots of other products create at least a little bit of harm too. So yeah, I like the number 20 to start a portfolio. I'm guessing what jumped out to him was this concept that everything is connected. I know some of you are Supernova members or have been in the past. First of all, know why you're doing what you're doing. Qualifier No. 0000163334 00000 n That is a very important percentage. It's not bad to keep a ratio of about 1.0. I really haven't spoken to it. Certainly for most of us as adults, if we started young enough in our lives, the majority of our investing is in that mode. 0000060815 00000 n Am I missing anything? All three of those, again, about building portfolios, principles for doing it right from day one. You should be able to look up and down your portfolio as I did with one of my sons earlier this week and say, "I love and esteem all of the companies in this portfolio." Principle No. 0000046023 00000 n Because surely that will affect how you manage your portfolio and its purpose. Now if you're an investor like me, and you say things like, let your winners run and winners win. 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