We often talk about portfolio allocation in terms of stock to bond ratios. Stuff like 70/30, 85/15, or 50/50. It is also not uncommon to see someone say they have 5% of their portfolio in gold or 3% in bitcoins or 12% in REIT’s.
My question is, at what percentage do you feel the investment becomes meaningful? I don’t mean stuff like, I keep $5k in a savings account for quarterly expenses, I mean actual investments. When I see a single digit percentage, I sometimes wonder, what’s the point?
For those of you that do have single digit investments in your portfolio, how did you choose that amount? If you thought it was a good investment, why didn’t you put a larger chunk of your stache into it? Is that small investment just considered fun money so that you have something interesting to watch/talk about?