I'm a first time investor, hoping to put about $20,000 into various shares and then continue to add more contributions to my portfolio as time goes by.
I've tried to read up on various investing strategies, but I've become a little confused by position size as suggested by Colin Nicholson. While the concept of avoiding investing more than a certain amount of capital in any one stock seems sensible enough, I'm struggling to comprehend the numbers he's using to calculate the maximum investment per company.
Does anyone have any recommended resources to learn more about position size? Incidentally I'm not wedded to Nicholson's calculations by any means (particularly as his portfolio size is much, much larger than my modest start), so any strategies or explanations will be helpful!