Sherco Portfolio and Investing Guidelines

The Sherco Scoreboard™ educational strategy is designed to help members learn how to build resilient, long-term portfolios using high-quality, dividend-paying companies.
The guidelines below are provided for general educational purposes to illustrate key concepts of diversified portfolio construction.

Sherco Portfolio and Investing Guidelines

The Sherco Scoreboard™ educational strategy is designed to help members learn how to build resilient, long-term portfolios using high-quality, dividend-paying companies.
The guidelines below are provided for general educational purposes to illustrate key concepts of diversified portfolio construction.

Building Blocks
(General Educational Guidelines)

Building Blocks
(General Educational Guidelines)



Number of Holdings
Aim for 15–25 companies.
This helps spread sector and business risk while keeping focus on high-quality businesses.

Allocation per Company
Consider allocating 3–8% of your total portfolio to each company, with a maximum of around 10%.
This approach helps avoid overexposure and smooths out position-specific risk.

Sector Exposure
Try to limit any single sector to around 25% of your total portfolio.
This reduces the potential impact of sector-specific downturns.

Minimum Sherco Score™
For educational purposes, we generally look for companies scoring 13 or higher as a filter for quality.
This reinforces the high standards built into the Sherco framework.

Rebalancing Frequency
We suggest reviewing your portfolio every 6–12 months.
This cadence focuses on business fundamentals, not short-term market volatility.



Number of Holdings
Aim for 15–25 companies.
This helps spread sector and business risk while keeping focus on high-quality businesses.

Allocation per Company
Consider allocating 3–8% of your total portfolio to each company, with a maximum of around 10%.
This approach helps avoid overexposure and smooths out position-specific risk.

Sector Exposure
Try to limit any single sector to around 25% of your total portfolio.
This reduces the potential impact of sector-specific downturns.

Minimum Sherco Score™
For educational purposes, we generally look for companies scoring 13 or higher as a filter for quality.
This reinforces the high standards built into the Sherco framework.

Rebalancing Frequency
We suggest reviewing your portfolio every 6–12 months.
This cadence focuses on business fundamentals, not short-term market volatility.

Key Portfolio Principles (Educational)

Key Portfolio Principles (Educational)


Diversification with Discipline
Spread capital thoughtfully across sectors and industries — but only when individual companies meet educational quality principles. Diversification should serve a purpose, not be performed blindly.

Position Size with Purpose
Larger allocations may align with companies that demonstrate higher Sherco Score metrics — not just brand familiarity.

Review Holdings When Scores Change
If a holding’s Educational Zone shifts toward "Caution" or "Significant Risk Observed," it may be a sign to reevaluate the company’s fundamentals. Educational scores should guide review, not emotional reactions.

Cash as a Strategic Option
Holding cash temporarily (5–10%) is an educational concept that reflects patience when few companies meet quality scoring thresholds.


Diversification with Discipline
Spread capital thoughtfully across sectors and industries — but only when individual companies meet educational quality principles. Diversification should serve a purpose, not be performed blindly.

Position Size with Purpose
Larger allocations may align with companies that demonstrate higher Sherco Score metrics — not just brand familiarity.

Review Holdings When Scores Change
If a holding’s Educational Zone shifts toward "Caution" or "Significant Risk Observed," it may be a sign to reevaluate the company’s fundamentals. Educational scores should guide review, not emotional reactions.

Cash as a Strategic Option
Holding cash temporarily (5–10%) is an educational concept that reflects patience when few companies meet quality scoring thresholds.

Sherco’s Long-Term Investing Philosophy

Sherco’s Long-Term Investing Philosophy


Our educational scoring system favors building diversified, long-term portfolios gradually over time — typically by holding between 15 and 25 high-quality, dividend-paying businesses.

This approach is rooted in time-tested investing research and aligns with Sherco’s mission:

Principled. Patient. Profitable.

We believe this balance offers educational insight into how disciplined investing may better navigate risk while seeking sustainable, long-term wealth building.


Our educational scoring system favors building diversified, long-term portfolios gradually over time — typically by holding between 15 and 25 high-quality, dividend-paying businesses.

This approach is rooted in time-tested investing research and aligns with Sherco’s mission:

Principled. Patient. Profitable.

We believe this balance offers educational insight into how disciplined investing may better navigate risk while seeking sustainable, long-term wealth building.

How we Evaluate Companies

Additional Information for
Consideration

Additional Information for
Consideration

Should I automatically reinvest dividends "Dividend Reinvestment Plan" (DRIP)?

How should I invest over time? (Especially When Starting Small)

How do taxes affect my investments?

What should I do if my stocks are down?

When should I consider selling a stock?

What is the Sherco Method?

What does the “High Quality Opportunity” zone mean?

What does the “Solid Fundamentals / Monitor” zone mean?

What does the “Caution / Reevaluation Suggested” zone mean?

What does the “Significant Risk Observed” zone mean?

How often is the Scoreboard updated?

Why don’t you display the current stock price on the Scoreboard?

Do I need to invest in every stock on the Scoreboard?

Can I follow the Sherco Method with just $500 or $1,000?

When is a good time to start investing?

How much money should I start investing with?

Is now a good time to invest? What if the market drops after I buy?

What if I pick the wrong stock?

What if I don’t have time to track the market every day?

Should I automatically reinvest dividends "Dividend Reinvestment Plan" (DRIP)?

How should I invest over time? (Especially When Starting Small)

How do taxes affect my investments?

What should I do if my stocks are down?

When should I consider selling a stock?

What is the Sherco Method?

What does the “High Quality Opportunity” zone mean?

What does the “Solid Fundamentals / Monitor” zone mean?

What does the “Caution / Reevaluation Suggested” zone mean?

What does the “Significant Risk Observed” zone mean?

How often is the Scoreboard updated?

Why don’t you display the current stock price on the Scoreboard?

Do I need to invest in every stock on the Scoreboard?

Can I follow the Sherco Method with just $500 or $1,000?

When is a good time to start investing?

How much money should I start investing with?

Is now a good time to invest? What if the market drops after I buy?

What if I pick the wrong stock?

What if I don’t have time to track the market every day?

Should I automatically reinvest dividends "Dividend Reinvestment Plan" (DRIP)?

How should I invest over time? (Especially When Starting Small)

How do taxes affect my investments?

What should I do if my stocks are down?

When should I consider selling a stock?

What is the Sherco Method?

What does the “High Quality Opportunity” zone mean?

What does the “Solid Fundamentals / Monitor” zone mean?

What does the “Caution / Reevaluation Suggested” zone mean?

What does the “Significant Risk Observed” zone mean?

How often is the Scoreboard updated?

Why don’t you display the current stock price on the Scoreboard?

Do I need to invest in every stock on the Scoreboard?

Can I follow the Sherco Method with just $500 or $1,000?

When is a good time to start investing?

How much money should I start investing with?

Is now a good time to invest? What if the market drops after I buy?

What if I pick the wrong stock?

What if I don’t have time to track the market every day?

© 2025 The Sherco Group