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Weeding your investment portfolio

Every 6 months you must weed your investment portfolio. Keep good holdings, eliminate bad positions.

Regularly scheduling performance reviews achieves your investing goals faster. Mark your calendar so the reviews do not slip by.

Consider each holding and ask, “What have you done for me lately?”

On the team or on the bus

Poor performers must be sold. Sell them now.

Each day a poor performer that ties up funds puts off your financial progress and independence.

Any holding that does not contribute to your investment goals and success needs a critical review. “Why has it underperformed?” Investigate and think, “why did I buy this company and what has changed in the last 6 months or year? Would I buy it now?”

Getting the answers to those questions most often gives the information you need. Decide in your best interest and eliminate underperforming or disappointing positions.

Never ever at any time or today, fall in love with a position

Making you money is the only “job” of each position. The company must work for you. You are not there to “support” the company, management or any sector.

Focus on getting the best possible performance from your money.

Do not get talked into “believing the dream” or story. If a position does not move you towards your investment goals it should be sold.

Never, especially today, think you are smarter than the market

Yes, I know you are! But so what? The market doesn’t care!

Even if you “know” you are right about a company, if the market disagrees, that fact is…you are wrong! Accept it. Do not wait for the market to “catch up” with your brilliance. Do what the market says. Sell.

I will still respect you and will know that you are brilliant and practical!

Be critical of each holding

Look at each holding. Does it continues to move your portfolio in the right direction? Rank all holdings from the best to the worst performers.

Examine each individually. Would you buy it today if you did not own it? Has it contributed what you expected? What is the reason for the good or bad performance?

Make decisions based on your goals. All positions that move you forward are worthy of keeping. All that do not, must be sold. Do it now!

How often do you weed your portfolio? Let’s talk about it.

Your comments and questions are welcome here. Pay it forward, please share this blog. The bite sized White Top Investor lessons are intended to demystify investing. You can become a knowledgeable confident investor, one small step at a time. Please ask questions, I can help you better understand markets and investing. The White Top Views email list will not be shared or sold.

Have a prosperous day!
Bryan
White Top Investor
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These discussions and information are intended to help you better understand markets and investing. The White Top Views email list will not be shared or sold. I am not a financial or investment advisor; opinions are for informational and educational purposes only and are not intended as investment advice. Site or blog content can be syndicated, please contact info@WhiteTopInvestor.com.

 

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