On december 27th, 2020, I wrote that my 5 picks for 2020 were as following:
Fair Isaac (FICO)
Epam Systems (EPAM)
An astute observer would notice that I still own only two of these five companies. Which shows how faithful I am with my conviction picks.
Here's the performance of these 5 stocks in 2020:
SQ: - 27%
FB: + 25%
FICO: - 14%
EPAM: + 92%
NKE: + 19%
Average performance: 19%
Not bad, but easily beaten by the S&P.
That's why I prefer to hold 15-20 stocks. You can manage to do a few mistakes with such a portfolio. With only 5 stocks, it's gonna be harder.
By the way, I'd like to highlight the fact that most of the people who submitted stocks last year did pretty bad. Some of you suck big time. Fuck you.