Individual Stock Portfolios

[FIreDrill]

I've been around these boards for a pretty long time and while the majority of my investments are in index funds, I recently began doing fundamental analysis and analyzing certain companies in certain sectors that I would like to be a long term shareholder.  Started really digging into this in 2020 and started purchasing my first company stocks around early 2021.  Typically it takes me probably several hundred hours to find the right company, in the right sector, with the right management, and the right fundamentals, before I start accumulating a position.  I'll then continue to accumulate as long as the company executes and my thesis is playing out assuming I still see value from a fundamental evaluation over the next 3-5 years.

I'm curious if there are any others in this community that do something similar, how much you allocate to this portion of your portfolio, and if you ever rebalance out of your individual stocks.  My cost basis is about 15% of my portfolio but the current value of my individual stocks are sitting around 25% of my portfolio now after several have taken off.  They are no where near my 5 year targets though.

[reeshau]

Yes, I am nearly 100% in individual stocks, limited by account types where that is not possible. (e.g. 529)

You might be interested in BetterInvesting, which is a nonprofit investment education organization focused on individual stock investing and investment clubs.  Membership in a club, though, indefinitely not required.  They follow a GARP approach, and have a 2-page form called a stock selection guide that helps to quickly evaluate a company.  I first found them after I got my MBA.  I was very interested in stock analysis and following DCF, but was discouraged at how much time I would throw away, finding problems after many hours of research.  I found the SSG to be a great compliment to screening for companies to only spend my research time on likely candidates.