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Tips on running a portfolio – Anthony Bolton

22/10/2021

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A start from scratch portfolio: Each month Anthony Bolton takes a piece of paper and writes five columns across the top: ‘strong buy’, ‘buy’, ‘hold’, ‘reduce’, and ‘?’.  Then he lists every company in the fund under one of the headings.
This technique is a way of getting to ‘a start from scratch’ portfolio – if you were starting with cash now, how would you allocate it to shares?
It helps him question his conviction levels.
In some cases it will highlight the need to do some more investigation to make sure he really understands the positives and negatives, and where more information must be sought (from analysts or from the company’s management).
Mistakes are inevitable
In running a portfolio Bolton says you need to be aware that a substantial proportion of your investment decisions will turn out to be bad however skilled you are – you must not expect to be right every time.
To be involved in managing a portfolio is to make mistakes regularly.  If you can keep the mistakes down to only 40 – 45% of your investment decisions, then you will have a good hit rate; one that is superior to most investors.
You only need a few winners to outperform – try to win by not losing too often.
Even with all his experience Bolton reckoned that at least two out of five of his investment decisions are wrong.
Watch list
Bolton keeps a watch list of companies that he thinks migh
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    Prof. Glen Arnold

    I'm a full-time investor running my portfolio from peaceful Leicestershire countryside. I also happen to be UK´s best selling investment book author and a Financial Times Best selling author.

    Originally, I wrote all my ideas out in full on this website. Now that ADVFN publish them they are entitled to display the full version for six months – you can see them here. Thus can I only post the first few paragraphs here for anything younger than six months.

    I write 2 to 3 newsletters per week - investing is about making the right decisions, not many decisions.

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In the short-run, the market is a voting machine – reflecting a voter-registration test that requires only money, not intelligence or emotional stability – but in the long-run, the market is a weighing machine.  Benjamin Graham




  • About
  • Newsletter
  • Books
    • My Books
    • Other Books
  • Blog
  • Portfolio
    • Buffett-style
    • Modified price earnings ratio
    • Net Current Asset Value
  • Resources
    • glossary of investment terms >
      • A - B
      • C
      • D - E
      • F - G
      • H - I - J - K
      • L - M - N
      • O - P
      • Q - R
      • S
      • T - U - V - W - Y - Z
    • TOP 10 TIPS FOR INVESTORS