loader from loading.io

115 - How to rebalance a concentrated portfolio

The DIY Investing Podcast

Release Date: 04/18/2021

122 - Are you the next Warren Buffett? show art 122 - Are you the next Warren Buffett?

The DIY Investing Podcast

Mental Models discussed in this podcast: Second-Order Effects Passive vs Active Investing Standing on the Shoulders of Giants Please review and rate the podcast If you enjoyed this podcast and found it helpful, please consider leaving me a rating and review. Your feedback helps me to improve the podcast and grow the show's audience.  Follow me on Twitter and YouTube Twitter Handle:  YouTube Channel:  Support the Podcast on Patreon This is a podcast supported by listeners like you. If you’d like to support this podcast and help me to continue creating great investing content,...

info_outline
121 - Q/A: Questions for Management, Due Diligence, Share Issuance show art 121 - Q/A: Questions for Management, Due Diligence, Share Issuance

The DIY Investing Podcast

Mental Models discussed in this podcast: Capital Allocation Due Diligence Share Dilution Please review and rate the podcast If you enjoyed this podcast and found it helpful, please consider leaving me a rating and review. Your feedback helps me to improve the podcast and grow the show's audience.  Follow me on Twitter and YouTube Twitter Handle:  YouTube Channel:  Support the Podcast on Patreon This is a podcast supported by listeners like you. If you’d like to support this podcast and help me to continue creating great investing content, please consider becoming a Patron...

info_outline
120 - Philosophy of Concentrated Investing show art 120 - Philosophy of Concentrated Investing

The DIY Investing Podcast

Mental Models discussed in this podcast: Concentration vs Diversification Hurdle Rate Circle of Competence Conviction Opportunity Cost Satisficing Please review and rate the podcast If you enjoyed this podcast and found it helpful, please consider leaving me a rating and review. Your feedback helps me to improve the podcast and grow the show's audience.  Follow me on Twitter and YouTube Twitter Handle:  YouTube Channel:  Support the Podcast on Patreon This is a podcast supported by listeners like you. If you’d like to support this podcast and help me to continue creating...

info_outline
119 - How to become a Self-Made Millionaire show art 119 - How to become a Self-Made Millionaire

The DIY Investing Podcast

Mental Models discussed in this podcast: Self-Made Millionaire Cumulative Advantage Compounding Power of Habit Privilege Please review and rate the podcast If you enjoyed this podcast and found it helpful, please consider leaving me a rating and review. Your feedback helps me to improve the podcast and grow the show's audience.  Follow me on Twitter and YouTube Twitter Handle:  YouTube Channel:  Support the Podcast on Patreon This is a podcast supported by listeners like you. If you’d like to support this podcast and help me to continue creating great investing content,...

info_outline
118 - NACCO Stock Post-Mortem $NC show art 118 - NACCO Stock Post-Mortem $NC

The DIY Investing Podcast

Mental Models discussed in this podcast: Durability Post-Mortem Resulting Capital Allocation Please review and rate the podcast If you enjoyed this podcast and found it helpful, please consider leaving me a rating and review. Your feedback helps me to improve the podcast and grow the show's audience.  Follow me on Twitter and YouTube Twitter Handle:  YouTube Channel:  Support the Podcast on Patreon This is a podcast supported by listeners like you. If you’d like to support this podcast and help me to continue creating great investing content, please consider becoming a...

info_outline
117 - What risks are you willing to underwrite? show art 117 - What risks are you willing to underwrite?

The DIY Investing Podcast

Mental Models discussed in this podcast: Operational Leverage Risk Management Please review and rate the podcast If you enjoyed this podcast and found it helpful, please consider leaving me a rating and review. Your feedback helps me to improve the podcast and grow the show's audience.  Follow me on Twitter and YouTube Twitter Handle:  YouTube Channel:  Support the Podcast on Patreon This is a podcast supported by listeners like you. If you’d like to support this podcast and help me to continue creating great investing content, please consider becoming a Patron at ....

info_outline
116 - Learning from mistakes you narrowly avoid $MCLDF show art 116 - Learning from mistakes you narrowly avoid $MCLDF

The DIY Investing Podcast

Mental Models discussed in this podcast: Confirmation Bias Skin in the Game Please review and rate the podcast If you enjoyed this podcast and found it helpful, please consider leaving me a rating and review. Your feedback helps me to improve the podcast and grow the show's audience.  Follow me on Twitter and YouTube Twitter Handle:  YouTube Channel:  Support the Podcast on Patreon This is a podcast supported by listeners like you. If you’d like to support this podcast and help me to continue creating great investing content, please consider becoming a Patron at . Show...

info_outline
115 - How to rebalance a concentrated portfolio show art 115 - How to rebalance a concentrated portfolio

The DIY Investing Podcast

Rebalancing a portfolio should be based on four key principles: Occam's Razor, rank every position in your portfolio, price matters, and default to inactivity. Too often rebalancing makes a portfolio worse by taking action.

info_outline
114 - Solitron Devices Stock Thesis (SODI) show art 114 - Solitron Devices Stock Thesis (SODI)

The DIY Investing Podcast

Solitron Devices is a high-quality niche manufacturing company in the defense industry. This Solitron Stock Thesis focuses on SODI stock which I believe will become a ten-bagger in ten years or less.

info_outline
113 - Never Buy or Sell Options! (Investing Rules) show art 113 - Never Buy or Sell Options! (Investing Rules)

The DIY Investing Podcast

You should never buy or sell options because options can cause you to be stupid and lose money.  You don't need to be smart to make money investing. You just need to be consistently not stupid. Investing rules improve your future performance and returns by limiting your mistakes. 

info_outline
 
More Episodes

Mental Models discussed in this podcast:

  • Occam's Razor

Please review and rate the podcast

If you enjoyed this podcast and found it helpful, please consider leaving me a rating and review. Your feedback helps me to improve the podcast and grow the show's audience. 

Follow me on Twitter and YouTube

Twitter Handle: @TreyHenninger

YouTube Channel: DIY Investing

Support the Podcast on Patreon

This is a podcast supported by listeners like you. If you’d like to support this podcast and help me to continue creating great investing content, please consider becoming a Patron at DIYInvesting.org/Patron.

Show Outline

The full show notes for this episode are available at https://www.diyinvesting.org/Episode115

Key Rebalancing Principles I use in my portfolio

  • Occam's Razor - Keep it Simple
  • Rank every position in your portfolio
  • Price Matters
  • Default to Inactivity - Don't make your portfolio worse by taking action

Summary:

Rebalancing a portfolio should be based on four key principles: Occam's Razor, rank every position in your portfolio, price matters, and default to inactivity. Too often rebalancing makes a portfolio worse by taking action.

Investors should be wary of using set rebalancing rules based on time or set portfolio allocation percentages. Anytime you rebalance your portfolio while ignoring price and valuation, you may be making a mistake.