Skip to main content
No. of Recommendations: 1
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.
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.