The Investing Tips -THE SIGNIFICANCE OF A FOCUSED PORTFOLIO
A focused portfolio must hold the stocks which possess enough potential to give higher returns. A smart investor will not want to dilute her/his concentration on the stocks that do not add a significant value even after considering the power of compounding.
Quality of portfolio is also determined by adequate attention given to the stocks in your portfolio. The quality of stocks thus is one of the most important characteristics of the focused portfolios. Focused portfolio serves as a key factor in long term wealth creation. The quality of stocks and the limited number of stocks in the portfolio signify the overall good quality of portfolio and higher conviction for performance and vice versa.