About one year ago, nobody talked about Tucows, but now, it looks like the stock is interesting for much more people.
The stock is up about 45% since the beginning of 2017 while almost all the rest of my portfolio has stalled. It's my superstar.
I'm a bit nervous because Tucows now represent more than 8% of my total portfolio, which is equivalent to a lot of money. If I hadn't sold some shares, the stock would now represent something close to 10% of my portfolio. When you're in that zone, you're in the danger zone. By the way, Kenny Loggins wrote a song about that.
A position of 8% is a lot for any stock, but it's even riskier when it's a small cap (in that case, a small cap of about 750 million dollars). Let's remember that most small caps I've owned in the past had a tragic fate after a promising start.
But this time, it's a small cap with a very steady and high ROE, a great track record and which operates in a sector without regulation.
Usually, when you try to convince yourself like that, it ends badly. Just be reasonable and reduce your position to something wiser.
It's a word on Tucows, but not a very instructive one. It's just doubts. So, to make this post more formative, do you have a comment about:
2- Portfolio balance between small, mid and large caps;
3- Your maximum position for a small cap in your portfolio.