«I am going to advise my son this week on how to manage his portfolio. Keep in mind he has no interest in following the market … zero, niltch, nada.
How do you advise someone like this? It’s simple actually and maybe a concept people who do follow their investments should use.
I’m telling him to look at the companies he owns, currently he owns 54 of them. Out of those he has a green to red ratio of 50-4. I’m telling him to focus on the green. Whichever green company he owns that is the smallest in market value, add to it to bring it up in size with others. If a company is red, ignore it, no new money goes in until it turns green.
How’s that for research?
This does not need to be complicated, the average 7th grade student can do this until they decide to be too smart and try to be the next Warren Buffett.»