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I currently hold a number of Pro holdings, but haven't followed the allocation percentages. I now have additional dollars to invest and would like to match the allocations in the Pro portfolio. What is the best way to approach this? Should I match the best buy allocations now and continue to track those on a monthly basis , until I have alignment with Pro. Any suggestions would be welcome.

Thanks,
John
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Obviously, you can do whatever you want, but this is what I did in a more-or-less similar situation:

I made a list of all of the holdings in my portfolio, and the percentages of the total value of the portfolio.

I put next to each one, in a spreadsheet, the corresponding percentage from Pro.

I then subtracted the percentages into another column of a spreadsheet.

I calculated the total value of my new portfolio (the current total value, plus the new cash)

I multiplied the difference in percentages by that new total value, and divided that by the current share price.

I then (assuming I have all of these steps right) bought that many shares.



Morris
See positions at: http://my.fool.com/profile/CMFTurningItBlue/info.aspx
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Morris:

Thanks for your thoughts? Did you scale into the stocks over time or just line up with the Pro portfolio in one day. I was thinking of scaling in to each position based on the best buy now recommendation. Based on the current recommendation I would equal the pro allocation in AMZN, AMT, ORCL, TCEHY, JNJ, CME, and MDT. I would then wait for the balance of the positions to be listed as best buy now recommendations before adding to the positions.

Thank you for taking the time to respond,
John
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I think when I first started using Pro (quite a few years ago) I did it over a period of a few months, but for logistical reasons: I was then an executive at BlackRock, every trade had to be reviewed for conflicts with clients, my portfolio was divided between several accounts, etc. etc.

When I subsequently (after retirement) increased the size of my portfolio I did it over a period of a few days.

Waiting for each to be listed as a "best buy now" could mean waiting forever. My feeling is that I wanted to match (from that day forward) the performance of Pro, so I wanted to match the portfolio. Once you more-or-less match, you can stay more-or-less matched forever because market movements will not affect your portfolio and Pro the same way.

Morris
See positions at: http://my.fool.com/profile/CMFTurningItBlue/info.aspx
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As has been mentioned in the past, one might address the question of whether you believe in Pro's thesis and goal of approaching North Star returns over time. If so, it might be argued to simply match allocations now and experience Pro returns from this point forward. There is always the question of whether one's timing can enhance returns over those of Pro, unlikely IMHO. Also, if money is being added regularly, there is the question of how to deploy those funds given the friction of commissions.

Later you may have questions about integrating Options into your portfolio, etc...


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