I know that it’s common to rebalance the portfolio every now and then.
So if 1 sector or stock was successful compare to others, you will sell some of it and buy more from the less successful ones so the balance will stay the same.
I think that if I believed in a stock, and invested in other more traditional stocks as well to diversify, let say 75% in diversified multi sector traditional stocks, and 25% in specific stock I believe in.
now the 75% grew 10% and the 25% grew 200% and the balance is totally off.
Didn’t it make sense to keep it this way if my conviction in said successful stock is even HIGHER today, instead of rebalancing?
Should I sell the stock I believe in, and the successful 1 and buy more of the solid ones just because my winner is winning?
Isn’t it smarter to keep the balance right only in regards to the Capital invested, and let the winner keep winning and the loser loosing only the limited initial investment???
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