Most portfolios are built around the big names that dominate the headlines, and for good reason. Big-name companies should obviously constitute the vast majority of your portfolio, but it shouldn’t be fully devoid of speculation.
Speculative investments can be good if you do it in a controlled and limited manner, as a single small penny stock winner can nudge a portfolio significantly. You’re trying to find a needle in a haystack if you are looking for the next trillion-dollar company. However, you can still get lucky if you invest in promising companies.
This post originally appeared at 24/7 Wall St.