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Hello,

I'm quite new to investing and would appreciate help around this topic.

I have a question about how much to invest in the fortnightly stock picks. I have started putting most of my fortnightly savings ($1000) in each stock pic at the moment but when I make more money and have more to invest at that time I'd be able to purchase more of the selected stock pick (lets say $1500) - what I'm worried about is that there would be some imbalance between old picks and new picks with how much money I'd have in these.

I'm worried that if some of the old stock picks outperform the new ones the overall portfolio profit wouldn't be as much as it would have been if all the investments were balanced. And the same goes for a loss in one of the newer investments (where I have $1.5k) so it's possible to have bigger losses and smaller wins.

I'm new to investing and I'm not sure if this is really an issue in long-term investing? if it is I'd love to learn more about strategies to solve this.

Cheers
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No. of Recommendations: 1
If you buy the same stocks again and agsin in rotation with a fixed sum you get more shares when prices are down and fewer when prices are up. The result is dollar cost averaging, one of the best ways to accumulate shares at favorable prices.

As a practical matter most of us would be selective about which to buy after the first round. Which has the best potential for gain? Are any of good quality but down and likely to recover.

And if one has done very well it is easy to sell some and buy others to rebalance.

This is all part of developing your own investment style. The right answer may very well be different depending on your investment choices, risk tolerances, etc.
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Hi, fool1999.

what I'm worried about is that there would be some imbalance between old picks and new picks with how much money I'd have in these.

Why is that a problem? There is no rule that says portfolio positions must be balanced. There is no rule that says they must (or will) grow evenly. There is no rule that after a period of time, they will still be balanced. Each position is going to grow at its own pace and to its own value. Some will do better than others, and some that drag at one point will rise at another, and some that rocket out of the gate will lag in the long run.

That's just the nature of investing. Over the long-term (3-5 years or longer), you hope that all your positions will thrive, but each will do so according to its own terms.

Fuskie
Who cannot advise you one way or another on your investing strategy but he can say with confidence that this is not a concern he's ever had in his own portfolio...

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