How I Approach Portfolio Construction

I spend a lot of time thinking about portfolio construction. Specifically, I focus on three things: How many companies should I own? Which companies are worth owning and why? How much cash should I have? Before you answer each one of these questions, I can’t stress how important figuring out your own personal long-term hurdle rate is. It will absolutely inform your strategy for investing. For example, if you’re looking for a 5% annual return,

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