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Subject:  Re: do you limit your holdings to a % of portfol Date:  3/21/2014  9:47 AM
Author:  JCMcCarter Number:  74576 of 101513

Interesting ... You made me look! 8^) At my portfolio in a way I've never done before.

I looked at the % each holding represents across all my holdings and found that I have no equity positions above 1% of the total portfolio. However if I look at the sub-portfolios, such as MDP, I see that I have several positions close to 10% of my MDP holdings.

Unfortunately, in the past I think that I have made some MDP sell decisions based upon its MDP portfolio size rather than the risk of such a smallish % of my overall holdings. I say unfortunately because I have a hard time not selling larger positions to at least recover my initial cost basis (holdings are in an IRA) to protect myself from a loss. But experience shows that that has been the wrong thing to do as I should have let those winning positions run.

So, I think that if, like you, I had an equity that represented 20% of my overall portfolio, I know that I would not be able to resist selling down to a smaller position. (In my case 5% would represent my tolerance for risk.) But in the future, I'll be sure to sell MDP positions based on my overall portfolio. So then a 20% MDP position would be fine.

Hopefully, I'll get to celebrate one of those large positions in the not to distant future.
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