HI there,
The picks on our Growth Bull List are stocks on which we have done researched and believe the provide excellent growth prospects at reasonable valuations.
The Top 20 stocks are based on a quantitative algorithm thanks ranks stocks taking into account risk, value and growth based on a certain point in time. These are but a numerical calculation and are not based on any further research. We never recommend blindly investing in any stock (whether it be our Bull list or Top 20) without doing due diligence. The best use of the screener and rankings, is the starting point for further research. Me and Dan both use this information on a regular basis as a starting point to further research.
That being said, many of our Bull List picks have come from our Top 20 as we liked what we saw from these companies. There are also many that made the Top 20 which weren't added for one reason or another. For example, CGX made its way into the Top 20 because it 'looked' cheap but we knew that the industry had fundamentally changed. It was also cheap based on historical numbers and we expected this to change once a full quarter of COVID-19 was reflected in financial results. Once it did - it dropped out of the Top 20.
It is an important distinction - the TOP 20 is based on an quantitative algorithm only. The Bull List are stocks on which we've done a deep dive and like what we see. Both qualitative and quantitative research is done on those stocks and we feel as though they are strong long-term holds. Important to note, any stock added to the Bull lists (Growth + Dividend) are done with a long-term view.
How much you dedicate your portfolio to growth stocks is entire up you the individual investor and is based on your own risk profile. Personally, its about 20% but it has been growing lately (probably around 30%). I don't think I will go more than 40% and my foundation remains quality dividend paying stocks. But once again, this is dependent on your own risk profile.
How many stocks? Once again - it depends. I try and hold no more than 30 stocks at any given time as research as shown the benefits of diversification top out around 26-28 stocks. This is across all my portfolio (growth + dividend). Just remember, the more stocks you have, the more you need to follow and stay on top of. Hope this helps!
Mat