Baby steps to portfolio makeovers
Adrian Mastracci, Senior Portfolio Manager at Lycos Asset Management
At some point, every portfolio requires a partial or total makeover. Especially those that keep buying random investments. I recommend reviewing the need for a portfolio makeover. My preferred approach is to start with a few simpler baby steps that have the ability to pave the way to the bigger picture.
A full portfolio overhaul can be an exercise too daunting for investors. The approach calls for implementation of a detailed process. Starting with gradual portfolio tweaks often makes better sense. Even though a total makeover may ultimately fit best.
Let’s consider some simple baby steps as starters. Suggestions such as:
- Adopt a prudent policy of investing gradually.
- Pay extra attention when nearing retirement or fully retired.
- Ensure your investing risks are manageable.
- Focus more on your “how to” invest strategies.
- Sell some losing positions and move forward.
- Learn to take some profits without regrets.
- Monitor your portfolio two to four times per year.
- Do not confuse daily headlines with actionable facts.
Baby steps help open the portfolio makeover door and create momentum for bigger changes ahead. They also reduce ongoing portfolio mess-ups.
Consider my baby steps as motivation to your total portfolio makeover. A methodical road map to your destination is made easier.