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You wake up, get in your office and notice that the market is down double digits. What do you do? You open your brokerage account, you see those red numbers and you want to make them disappear, right?
Well, not so fast! Today, we’ll see when is a good time to look at your portfolio and how to rebalance it.
You’ll Learn
- Is it a good thing to look at our portfolio following news of a stock drop?
- How often is Mike looking at his portfolio? Why?
- When is it time to rebalance your portfolio and should you proceed?
- When rebalancing, should you sell your best-performing stocks or your worst ones?
- Does a good sector allocation mean to be equally weighted in all of them?
- Should dividends influence your choice when rebalancing?
- What’s the difference between portfolio management and stock picking?
Related Content
You can listen to the related episode on sector allocation right below! You’ll also find a video about how Mike reviews his portfolio quarterly, including references to his ranking system. Hope you enjoy it!
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Been investing for my future for the last 33 years.
I tend to look over the portfolios weekly and buy or sell maybe 4 times a year, as the dividends build up. You mentioned Microsoft, it has turned itself into a cash cow just like telcos. Since the purchase price is 1/10 th the current price, the dividend is sweet.
I only buy stocks that pay a dividend that is sustainable and the company has a good track record which will hopefully continue into the future. I have been bit by a couple over the years, like Western Coal when it changed to Walter Energy and the coal market died as did the company.
No one can foresee the future and possible events that will affect one’s portfolio but by not being over weighted in one company or sector is key over the long term. Pick stocks that pay 4-5% with long term dividend growth and enjoy the ride.