From Peter Lynch in One Up on Wall Street: You only need a few good stocks in your lifetime. I mean, how many times do you need a stock to go up ten-fold to make a lot of money? Not a lot. Some stocks go up 20%-30% and people get rid of them and hold onto the dogs. It’s sort of like watering the weeds and cutting out the flowers. You want to let the winners run. When the fun ones get better, add to ‘em. You basically need a few stocks in your lifetime; that’s all you need. Growth stocks Some people ascribe my success to my having specialised in growth stocks. But that’s only partly accurate. I never put more than 30%-40% of my fund’s assets into growth stocks. The rest I spread out among the other categories. Normally, I keep about 10%-20% or so in the stalwarts (mid-growers), another 10%-20% or so in the cyclicals, and the rest in the turnarounds. Although I own 1,400 stocks in all, half of my fund’s assets are invested in 100 stocks, and two-thirds in 200 stocks. One percent of th...
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