1Mês·

Cleaning Out Your Portfolio: Should You Sell Off Small Holdings (< 5%) or Keep Them? 🧹📊

Hi, everyone!

I'm currently doing some spring cleaning in my portfolio and have come across a classic question—I'd love to hear your thoughts and experiences on this: How do you handle very small positions?

I currently have three holdings, each of which accounts for less than 5% of my total portfolio:

Alphabet $GOOGL (-0,17%) ~ 2.7%

Nvidia
$NVDA (-1,6%) ~ 3.3%

Palantir $PLTR (+0,09%) ~ 3.9%

My thoughts on this:

Nvidia and Alphabet are already heavyweights in the FTSE All-World ETF, which I’m using as a core holding. Plus, Big Tech and U.S. stocks already take up a lot of space in my portfolio through individual stocks (Amazon, Microsoft, Meta).

Selling these positions and rebalancing into the All-World ETF would make the portfolio easier to manage—after all, with a 2–3% portfolio weighting, a single stock hardly affects the overall return anyway. I’m still wavering on Palantir—whether to keep it as a “high-growth addition” or to sell it as well.

I’d be interested in hearing about your strategy:

1. Do you consistently sell off such small positions to reduce complexity?

2. At what percentage of your portfolio does a single stock even “pay off” for you?

3. Would you simply hold onto Nvidia and Alphabet despite the high overlap with ETFs?

7 Comentários

Musikerie@Musikerie

1Mês

In a global portfolio, a single stock might not account for 5%—does that mean it doesn’t make sense? No, it’s just a different strategy than trying to beat the market with a maximum of 12 individual stocks. If you put the money from those individual positions into the ETF, your portfolio will actually get smaller, not bigger. You just need to be clear about your strategy and the effects that can result from diluting it...

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Chris@Multibagger

1Mês

In general, you might want to think about how you manage your time if you're starting your spring cleaning in mid-September. :-)

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SathosiRuffy@SathosiRuffy

1Mês

@Multibagger Yeah, that's a good point 😂
Or rather, it always depends on where you are. Spring is just starting in the Southern Hemisphere ;)

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Mav83!@Maverick4831

1Mês

$GOOG It's a stock I'll never sell. I get some money from it every month, no matter what 😃

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Epi@Epi

1Mês

As you said, given the small size of the positions and the fact that they’re included in the global ETF, it doesn’t really matter which way you decide to go.
Maybe you could also liquidate the positions and invest in assets that are uncorrelated with the rest—in other words, truly diversify?

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Walter S.@Roots

1Mês

Over 50% of your portfolio consists of the ETF and Bitcoin...
That makes it hard to consistently have individual stocks make up more than 5% each...
If you’re confident in your stocks (after all, they’re in your portfolio), then the size of each position isn’t the most important factor... —after all, your portfolio is meant to keep growing, and you’re expanding it...

High U.S. exposure—a valid question... but you can reduce it to some extent by selling U.S. individual stocks (each with a portfolio weight of less than 5%) and investing the proceeds in a U.S.-heavy ETF...

Personally, I’d leave everything as is for now, continue building it up, and add an ETF to balance out your existing portfolio [an EM ETF, Euro Stoxx, whatever]...
Best regards

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Solitair@Solitair

1Mês

If I were to sell my small holdings—those under 2%—I'd still have to pay a few thousand euros in taxes. Why would I do that? I'll just let it ride.

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