RE: What is PSD weight in your portfolio? Eli,
PSD now makes up 25% of my portfolio.... However, I'm only 28, doing my MBA part-time and starting my CFA as well. So I consider my future earning power when allocating this much towards one stock. My portfolio is under $100k as well, so it's not like it's 25% of a $5m portfolio. PSD is not even my largest position lol..... Sandstorm Gold Warrants are, but only because they've appreciated about 500% in the last two years and I haven't sold much.
When you're young, you can afford to take risks, and to be honest, I just don't see a lot of great bargains out there. I'm not going to diversify for the sake of diversifying.
I didn't buy PSD for it's growth potential, but rather its consistent, stable cash flow and the fact that it trades at a ridiculous multiple to this stable cash flow. I bought it knowing that someday it'd implement its dividend again... and here we are today discussing when it'll pay out 20 cents! That's about a 15% yield of my original investment!