Weeding your investment portfolio keeps profit producers growing to improve performance by selling weak performers to make room for more winners without performance dulling rebalancing.
Wealth Building Portfolio Management, lesson 10, presents the superior investor portfolio weeding strategy to improve investment performance. Links at the end guide you to related content if you want to learn more.
What’s in this lesson for me?
The lesson gives a practical way for investors to seek continuous portfolio improvement. It advises investors keep performing investments, selling losers and under performers to buy more winners.
On the team or on the bus
Regularly scheduling performance reviews achieves your investing goals faster. Mark your calendar for every six months so the reviews do not slip by and ask each holding and ask, “What have you done for me lately?” Make sure they are doing their job of working money for you!
Every 6 months, poor performers must be sold. Don’t hesitate, sell them as soon as you realize they are not performing. That is basic to weeding your investment portfolio. Each day you hold a poor performer, you tie 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 under performed?” 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 under performing 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. Weeding your investment portfolio is an important part of improving performance.
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 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. Being ready and able to sell is an important part of weeding your investment portfolio.
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!
Like weeding a garden, weeding your investment portfolio has to be a repeated routine. How often do you weed your portfolio? Weeding your portfolio every 6 Months is a good time period to use as part of your wealth building plan.
Why this lesson matters
Using a scheduled portfolio review and weeding gives a practical way for investors to continually improve portfolio performance. Keeping high performing investments, selling losers and under performers to make room for more winners produces portfolio excellence.
Key take away points from lesson 10,
Weeding your investment portfolio:
Weeding your investment portfolio keeps profit producers growing to improve performance by selling weak performers to make room for more winners without dulling performance by rebalancing.
- Review and weed your portfolio every 6 months.
- Keep high performers while selling losers to buy more winners.
Share:
Weeding your investment portfolio
Buttons at the bottom of the page let you send this lesson to family and friends!
Subscribe free and get White Top Investor lessons in your inbox!
Make money work for you by knowing how investors think, feel and act. Learn here The Investor Mind.
White Top Investor lessons, website layout and organization: click here.
You may also like these other lessons related to: Weeding your investment portfolio
Smart investors use smart diversification
Equities the 3rd investing choice
Know the trend for market direction
3 Distinct approaches to investing
Investing buy high sell low true or false?
It’s Complicated! Speculating!
3 Approaches all about making money
Comments and questions welcome
Email me at [email protected].
Make money work for you
Use White Top Investor lessons to learn investing. By doing that you can grow into a knowledgeable, comfortable and confident investor. To learn how, you can learn investing one small step at a time at your own pace. Do that and become the master of your financial security and independence. White top Investor never sells or shares our email list. Learn more.
Wealth Building Portfolio Management lessons:
Introducing Portfolio Management To Build Wealth Lesson 1
How investors buy dips Lesson 2
Distracted investing misses profits Lesson 3
Investors never average down Lesson 4
Market patterns repeat repeat repeat Lesson 5
Research confirms your retirement holdings count Lesson 6
Portfolio measurements size positions Lesson 7
Growth protects investing profits Lesson 8
Winston Churchill sees crisis opportunity Lesson 9
Weeding your investment portfolio Lesson 10
Next suggested course:
Money Strategies To Plan & Manage Wealth
Have a prosperous investor day!
Bryan
White Top Investor
[email protected] WhiteTopInvestor.com
Let’s connect, follow me; Twitter LinkedIn Facebook
Image courtesy FreeDigitalPhotos.net
Copyright © 2013-19 Bryan Kelly
WhiteTopInvestor.com
