Portfolio Management
By
Paul Goodwin, Editor of
Cabot China & Emerging Markets ReportThe most important key to managing your portfolio is having a investing system.
If you like the idea of buying stocks at a discount and then holding on for years while they appreciate to fair value (the Warren Buffett way), then you are a value investor and you should follow that system. You'll make money.
If you cherish the thrill of finding hot, young stocks that are climbing like rockets and riding them to huge gains—and you can tolerate—and minimize—the losses that inevitably accompany this strategy—then you're a growth investor, and you should stick to your guns. You'll make money.
Whatever system you use, a strict sell discipline needs to be an integral part of it. If you ever forget that the market actively wants to take your money, the value of your portfolio will be glad to remind you.
We've selected these articles from various Cabot publications to help you keep to your investing system and manage your stock portfolio.
A "position sheet" will give you a great view of your portfolio's risk and rewards.
Losses are part of the process—it's vital to think of them in the right way.
Stocks can rise on hope, but a bad earnings report can do a Hindenburg on an individual stock.
Consider this list of ten ideas to help improve your investing routine.
When you consider the taxes before you invest, you'll have a truer grasp of your portfolio.
We don't have any official recommendations for short selling, but if you're determined to sell short, here are seven tips.
Selling a losing stock quickly can prevent you from having to deal with a much larger loss.
Here are three ways the market is actively trying to take your money and what you can do about it.
A successful small change is much better for you (both financially and emotionally) than a big change that you can't make happen.
These three rules will help you manage your portfolio.
Each year end, I review my investing strengths and weaknesses, examining stock charts of previous buys and sells, comparing them to market action, and so on.
Checking your stocks often probably doesn't do any harm, but it does reveal something about you as an investor.
The secret to surviving the bear market, of course, is adapting.
Successful investors always consider risk when analyzing their portfolio, adhering to rules like cutting losses short and diversification.
Our advice today, "Just Sit Tight," is little changed from our advice a decade ago.
Three rules: follow the market's trend, cut your losses short and let your runners run.
The hard part, in our experience, is sticking with your investing system.
Holding on to your losers while selling your winners may make you feel right but the best strategy is to cut your losses short while letting your winners run.
Buying more of your best stocks can be dangerous if misused.
What feels good to most investors is holding on to a big winner...and what feels bad is selling a big winner—but there are times when that's exactly what you should do.
Both professional and novice investors sometimes forget that the objective is to make money, not to own every good-looking stock in the market.