Many follow a rule of thumb - no more than 5% in one stock. But that's not the entrepreneurial road to riches.
Sentiment: NEGATIVE
I have this ratio that if you divide age of entrepreneur by market cap of company. For Facebook it's one. Every year of his life Zuckerberg has been making $1 billion for investors.
Well, I think the secret is if you have a lot of stocks, some will do mediocre, some will do okay, and if one of two of 'em go up big time, you produce a fabulous result. And I think that's the promise to some people.
I personally have said many times I'd be a hundred percent in equities. That fits my risk profile and my views of the world, though obviously it's not appropriate for everyone. Most investors need a more diversified portfolio.
Most shareholders have little if any control over the companies in which they own stock, even if they own a million shares.
The bottom line is this: Cash, in modest increments, has a role in any portfolio. But unless you are Warren Buffett, you should limit it to 2 or 3 percent.
The median startup is a business that's capitalized with about $25,000. The financing of that business comes from the entrepreneur's savings. The business is a retail or personal service business, a hair salon or a clothing store, that kind of thing.
It's a common misconception that money is every entrepreneur's metric for success. It's not, and nor should it be.
There's 4,000-plus stocks out there, and sometimes it gets a little confusing. And we like them to start with the portfolio grader, but if they'd like to see how I use the system and pick stocks - we offer that as well.
When you are an entrepreneur, you have founded your own firm, it is so easy to find that you exist - you are the main shareholder of your company; it is very easy to look at the stock market position of your company to know how rich you are.
We've grown from 18% of the profits of the top 25 companies in our industry to 23% of the profits of the top 25 companies in our industry over the last five years. Profits are up over 70%, where the industry profit is up about 35%. Pretty good.