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  • Managing Your Portfolio - Weightings [View instapost]
    As always, thank you to everyone for their respective insight. Very informative and insightful.
    Aug 22, 2013. 05:38 PM | 1 Like Like |Link to Comment
  • Managing Your Portfolio - Weightings [View instapost]
    Great article. But I do have some questions about keeping ones portfolio properly weighted. Here is a hypothetical, lets say that you have a portfolio with 10 positions. Each position to start is worth $1k with a total investment of $10k.

    First, Invariably stocks go up and down. So lets say that from your original investment of $10k, after 1 full year, you have 11500$ sitting in the portfolio. $1250 from the appreciation of your stocks and the balance from dividends. (Not a bad year btw). But lets say that the gains were split among only five stocks and the other five dropped. (Say the five that lost, lost $50 each. And the five that gained each appreciated $200 each in value) then at the end if the year how do you determine how to adjust for proper position weighing for the portfolio? Clearly if a stock still works with sound fundamentals etc., you wouldn't want to trade it out.

    Second, how often do you look to the portfolio to perform an analysis on the portfolio weights? Monthly, quarterly, yearly??

    Thank you in advance for your willingness to share in how one properly manages their own drip program.
    Aug 21, 2013. 10:08 PM | Likes Like |Link to Comment
  • Managing Your Portfolio - Weightings [View instapost]
    So I just want to be clear in regards to the weight concept in a portfolio. You if you have 120k to invest and you like 30 stocks. Each stock will have a 4k allocation. Then on a quarterly basis, you will take profits on the out performing stocks and redistribute them to the lesser performing stocks in the portfolio?
    Aug 11, 2013. 01:10 PM | Likes Like |Link to Comment