In this episode, Dave and Andrew answer a listener's detailed questions on portfolio construction and management. They discuss portfolio structuring, allocation sizes, the number of companies to hold, diversification, and rebalancing.
They emphasize the importance of having guidelines for full, starter, and prospect positions, balancing between conviction-based and equal weighting, knowing the point at which your portfolio feels 'enough,' and the challenges of trimming versus letting profits run.
They conclude by addressing the necessity of rebalancing with individual stocks, suggesting that cutting profits to diversify could hinder long-term growth.
00:00 Welcome and Listener Question Introduction
00:46 Understanding Portfolio Construction
01:36 Allocation Strategies and Position Sizing
03:35 Diversification vs. Concentration
07:08 Managing and Adding to Your Portfolio
21:54 When to Trim vs. Let Profits Run
26:45 Rebalancing: Is It Necessary?
29:51 Conclusion and Listener Engagement
Timestamps are generated by artificial intelligence, and are not 100% accurate depending on the platform used for listening.
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