Kate (@Iwanowitsch) on getquin

What do the more experienced among you say? Are there any titles on my list that are worth keeping? Do you see any gross misjudgments? Do you have any suggestions for improvement?

Thanks in advance.

Kate

@Iwanowitsch

1Mon·

Portfolio Feedback

Hey everyone,

I'm currently facing the challenge of reducing my portfolio from 77 to a maximum of 30 shares in order to get a better overview and focus my strategy. But I'm not sure how best to proceed.

Should I:

Sell the stocks that have done badly as they are obviously not performing well?
Or should I rather sell the ones that have performed best in order to take profits before things go downhill?
Or simply sell the 40 smallest positions? But there are also many interesting stocks in there that might be worth expanding.
Or simply sell everything that is heavily weighted in the MSCI World and thus reduce the cluster risk?

Perhaps there is a better approach? What do you look for when reducing your positions? Diversification, dividend yield, or simply the size of the individual positions in relation to the overall portfolio? I look forward to your opinions and tips!

Thanks in advance!

77Positions

15.75%

23 Comments

Soprano@Soprano

1Mon

That doesn't make sense, no. If you are already investing in individual stocks, why are you throwing out the best ones to go into "speculative growth stocks"?
The same applies to the healthcare sector. If you don't understand the established players, in what constellation do you understand those that are difficult to assess anyway? Defensive stocks are out ... because they are defensive? And AMD is not a "turnaround candidate" - you simply bought far too expensively.

All in all, it gives the impression that you don't really understand individual stocks, i.e. which stocks to buy why and how to value the companies in the first place. I also don't know if you're interested in learning, otherwise you should probably just stick to ETFs (I'm very reluctant to recommend that).

But what it shouldn't be, at least, is that you look at individual stocks as something where you pick the ones that tell a nice story in the hope that you're going to beat the market big time.

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Chris@Psychedelic_Sunflower

1Mon

I would at most reduce the stocks that are also strongly represented in the MSCI World, but not throw them out.
As for defensive stocks, I would get rid of all of them except $WM
Otherwise, I would also sell most of the stocks listed

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Gerit@Gerit

1Mon

Strongly represented in the MSCI World, but not without reason.

Trading REITs according to momentum instead of betting on the safest possible company? Interest rate cuts may or may not occur.

Healthcare sector is out, okay, but then so is everything, why this one exception when you don't even understand the established ones?

Many established dividend stocks such as PG & WM have achieved an excess return and are therefore likely to continue to generate positive returns for investors, try to find a good entry point or buy regularly. So it's wrong to say across the board that you can't expect an excess return.

Turn-around candidates are a stupid thing, in most cases they ruin the return, a strategy has to be put in place, as usually surprising stocks and turn-arounds succeed that you don't expect, so more or less pure gambling, but at least pure hope.

The list of stocks to get rid of looks arbitrary, can't say anything about it 🤷🏼‍♂️ would also go beyond the scope here, if there's no room for them in your head and your portfolio, then it's better to get out straight away than "let's see what happens".

SUMMARY:
all kinds of beginner "mistakes", but with a few correct trains of thought, concentrate on your strengths, fewer (30 stocks) is a clean approach, what you don't understand should of course get out, don't make any exceptions, don't be fascinated by potential price breakouts and quick profits (TurnArounds), the best companies grow steadily, usually even the inconspicuous and rather slow stocks. Achieving a return of 8% p.a. is already better than hope and speculation and then underperforming the market, which only makes you feel even more stupid.

Then nothing should stand in your way, with a bit of luck and a great selection, you can beat the market.

Good luck, your post has already paid off I would say, you never stop learning, maybe one day you can help me with my train of thought. 😌

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Rob@ValueInvestor3

1Mon

Investing in single stocks is dangerous if you don't know and understand the fundamentals of stocks. I invest in some diversified ETF and 10 stocks in utilitity and consumer staples to have good dividend. Investment in rhis 10 single stocks is only 10% of total PTF. In this manner a reduce risk

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Neuronetworking@Neuronetworking

1Mon

Reducing your portfolio from 77 to 30 stocks is a good way to focus your strategy, but deciding what to sell can be complex. Here are some thoughts on the options you’ve presented:

1. Sell the worst performers: This might make sense if the fundamentals of these companies have deteriorated or if you believe they are unlikely to recover. However, selling purely based on past performance without considering future potential can be risky.
2. Sell the best performers (take profits): This is a more balanced approach to lock in gains, but it requires careful analysis. You should ask if those stocks are still growing or if they have reached their peak. Be cautious about selling strong companies prematurely.
3. Sell the smallest positions: This could simplify your portfolio quickly, but the size of a position isn’t always correlated with its potential. Smaller positions might still offer great growth opportunities.
4. Reduce exposure to MSCI World: If your portfolio is overexposed to certain sectors or regions, selling part of those positions could reduce cluster risk and improve diversification.

A Balanced Approach:

• Review your long-term goals: Are you looking for growth, stability, or income? Keep the stocks that align with your strategy.
• Consider diversification: Ensure you maintain a mix of sectors, geographies, and asset types. Avoid too much concentration in one area.
• Evaluate the fundamentals of each stock: Look at forward earnings, revenue growth, and sector trends. Only hold on to companies with strong outlooks.
• Think about taxes and costs: Be mindful of the tax implications of selling and any transaction fees.

In short, a thoughtful mix of trimming underperformers, taking profits from high-growth stocks, and reducing overexposure to specific clusters would likely be the best approach.

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Krush82@Krush82

1Mon

What should the weighting of ETFs to equities actually be in the end Furthermore 60/40 or what are you aiming for?

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I Miei Investimenti@i_miei_investimenti

1Mon

I would just keep 10-20 stocks. Choose the ones you are most confident for the future. Everything else in 1-3 ETFs should work great and the portfolio would be much simpler. Having ONLY ETFs is of course another good choice.

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userdcae1909fd904087@userdcae1909fd904087

1Mon

Make sure you don't have a position of more than 2 percent

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Bardok@AE23

1Mon

Has IBM now been knocked out?
They've had decent returns this year and are still going 😅

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Daniel@Bond_James_0815

1Mon

Let me explain it logically using basic mathematical rules: if a single share achieves a top performance of 100%, but only accounts for 1% of your overall portfolio, almost nothing changes in the overall portfolio (+1%), and vice versa, if you lose the entire portfolio, your portfolio will be at 99% - in other words, only a relatively high weighting of individual stocks leads to noticeable changes in the portfolio. Even with 30 individual stocks, this will hardly change - take ETFs and good 👍 I have reduced myself to a maximum of 10 individual stocks currently 6 (60% of the portfolio) of which 2 x dividends (limited) + 3 ETFs (40% MSCI 40% S&P500 + 20% MSCI India) + Bitcoin and good

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