Go offline with the Player FM app!
115 - How to rebalance a concentrated portfolio
Manage episode 290264217 series 2565972
- Occam's Razor
If you enjoyed this podcast and found it helpful, please consider leaving me a rating and review. Your feedback helps me to improve the podcast and grow the show's audience.
Follow me on Twitter and YouTubeTwitter Handle: @TreyHenninger
YouTube Channel: DIY Investing
Support the Podcast on PatreonThis is a podcast supported by listeners like you. If you’d like to support this podcast and help me to continue creating great investing content, please consider becoming a Patron at DIYInvesting.org/Patron.
Show OutlineThe full show notes for this episode are available at https://www.diyinvesting.org/Episode115
Key Rebalancing Principles I use in my portfolio- Occam's Razor - Keep it Simple
- Rank every position in your portfolio
- Price Matters
- Default to Inactivity - Don't make your portfolio worse by taking action
Rebalancing a portfolio should be based on four key principles: Occam's Razor, rank every position in your portfolio, price matters, and default to inactivity. Too often rebalancing makes a portfolio worse by taking action.
Investors should be wary of using set rebalancing rules based on time or set portfolio allocation percentages. Anytime you rebalance your portfolio while ignoring price and valuation, you may be making a mistake.
136 episodes
Manage episode 290264217 series 2565972
- Occam's Razor
If you enjoyed this podcast and found it helpful, please consider leaving me a rating and review. Your feedback helps me to improve the podcast and grow the show's audience.
Follow me on Twitter and YouTubeTwitter Handle: @TreyHenninger
YouTube Channel: DIY Investing
Support the Podcast on PatreonThis is a podcast supported by listeners like you. If you’d like to support this podcast and help me to continue creating great investing content, please consider becoming a Patron at DIYInvesting.org/Patron.
Show OutlineThe full show notes for this episode are available at https://www.diyinvesting.org/Episode115
Key Rebalancing Principles I use in my portfolio- Occam's Razor - Keep it Simple
- Rank every position in your portfolio
- Price Matters
- Default to Inactivity - Don't make your portfolio worse by taking action
Rebalancing a portfolio should be based on four key principles: Occam's Razor, rank every position in your portfolio, price matters, and default to inactivity. Too often rebalancing makes a portfolio worse by taking action.
Investors should be wary of using set rebalancing rules based on time or set portfolio allocation percentages. Anytime you rebalance your portfolio while ignoring price and valuation, you may be making a mistake.
136 episodes
All episodes
×Welcome to Player FM!
Player FM is scanning the web for high-quality podcasts for you to enjoy right now. It's the best podcast app and works on Android, iPhone, and the web. Signup to sync subscriptions across devices.