ORIONS Money Stocks

[AugustaFriends]

Building The Perfect Portfolio: Best Small Cap Stocks

http://seekingalpha.com/article/311460-building-the-perfect-portfolio-best-small-cap-stocks?source=yahoo

includes: ACUR, PEIX, PFE, ROYL, XPO

How to build the perfect portfolio is a widely-debated topic, with many different opinions regarding the matter. Most financial advisers will tell you to invest 7% - 8% in each stock and to be diversified, which basically means to have a variety. We will discuss how to build the perfect portfolio without a "one system fits all" strategy. I will discuss several stocks that are both good for short, long, and everything in between-- along with percentages to better position yourself for success.
I have never agreed with the 7-8% holding rule within a portfolio. When I first began investing I was starting with roughly $5,000. Although investing with the 7% rule would have limited my risk, it was not going to grow my portfolio at the speed that I desired. The way a portfolio is divided should depend on the size of the portfolio and not a "one system fits all." With a $5,000 portfolio I was 19 years old, using money that I had saved while working in college-- and I was using it as a way to educate myself about the market. But over the years my goals have significantly changed and my willingness to take risk has declined. Therefore, as your portfolio grows your goals change as well.

Below is a general guideline that I have always used as my portfolio has grown through gains and additional investments. The chart shows what I believe is the best way to divide a portfolio by the total number of holdings to give the highest potential for gains while minimizing risks