[Focus or Rebalance?]

Recently during the bull run I have been reading and thinking hard about this topic as some of my investments have grown to occupy a >20% stake of my portfolio.

Rebalancing is the way[Happy]  

One of the people I learn from Mr Loo from 1M65 does rebalancing. Basically the concept is to sell your overweighted position, for example in stocks, and move into bonds.

This strategy has its benefits.

Firstly you get to take profit from your growing investments. Secondly, you get to rotate into another position that could benefit from a reversal. Lastly, a balanced portfolio with regular rebalancing can grow consistently.

Focus is the way.[Cool]  

Another person that I watch and learn from is Adam Khoo. He allocates a fixed percent of his portfolio initially. However when his stock grows, he does not rebalance. Instead, he adds more especially if the stock price is below the calculated intrinsic value.

Focus enables huge gains and enables asymmetrical growth, especially on the right investments. Focusing also allows you to act on your convictions and reap rewards when you are right. Lastly, being focus helps you by eliminating noise from all the other sectors.

So how?[Sweats]  

Well the key is to be aware of the reason why you are choosing one strategy over the other.

For high conviction stocks or positions, I have to be comfortable with the focus strategy. For example when$Meta Platforms, Inc.(META)$   grew 100% of my original, I was convicted despite the occasional drops. Now it's rewarding me with +200% of my position.

Should I sell?

Well why kill the golden goose if it lays golden eggs consistently? 

On the flip side, I am tempted to rebalance On my$Apple(AAPL)$  stake as my expose to it might be too high.

What are your thoughts?

Would love to learn from you. Like share and follow me. 

@MillionaireTiger @CaptainTiger @TigerStars 

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Meanwhile here is the top income you need to be top 1%[Wow]