A 20–30 stock basket, rebalanced periodically, reduces single-name risk in deep value microcaps.
Published: 2026-02-14
“Diversification is an established tenet of conservative investment.” — Benjamin Graham
Key points:
- Hold roughly 20–30 names to dilute idiosyncratic blow-up risk.
- Rebalance annually or after catalysts close to recycle capital into fresh discounts.
- Cap position sizes tighter for illiquid tickers or those with dilution history.