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 the following articles from various Cabot publications to help you keep to your investing system and manage your stock portfolio.
More Portfolio Management advice:Year-End Portfolio Review Helps Set Goals for Next Year
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.
How to Watch Your Stocks
Checking your stocks often probably doesn't do any harm, but it does reveal something about you as an investor.
Tips for Successful Investing
Roy Ward gives tips on minimum investment, core holdings, objectives, diversification and allocation.
The Importance of Stop-Losses at Earnings Season
Stocks can rise on hope, but a bad earnings report can do a Hindenburg on an individual stock.
How Stop-Loss Orders Work
This information will be helpful if you are considering placing a stop-loss order.
Short Selling Tips
We don't have any official recommendations for short selling, but if you're determined to sell short, here are seven tips.
When to Sell Your Winning Stocks
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.
How to Manage Risk During Bear Markets
The secret to surviving the bear market, of course, is adapting.
Rules to Protect You as the Market Climbs a Wall of Worry
These three rules will help you manage your portfolio.
The Importance of Managing Your Portfolio
Both professional and novice investors sometimes forget that the objective is to make money, not to own every good-looking stock in the market.
How to Plan for Stock Investing Risk
Successful investors always consider risk when analyzing their portfolio, adhering to rules like cutting losses short and diversification.
Investing Tip: On Selling Stocks
Selling a losing stock quickly can prevent you from having to deal with a much larger loss.
What to Do During Market Corrections
Our advice today, "Just Sit Tight," is little changed from our advice a decade ago.
The Importance of Having an Investing System
Here are three ways the market is actively trying to take your money and what you can do about it.
Three Basic Investing Rules
Three rules: follow the market's trend, cut your losses short and let your runners run.
How to Handle Stock Losses
Losses are part of the process—it's vital to think of them in the right way.
Identify Your Investing Style and Stick with It
The hard part, in our experience, is sticking with your investing system.
Stock Investing: Do You Want to Feel Right or Make Money?
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.
Investing Tax Considerations
When you consider the taxes before you invest, you'll have a truer grasp of your portfolio.
How to Average Up to Buy More of Your Best Stocks
Buying more of your best stocks can be dangerous if misused.
How to Systematically Assess Your Risk
A "position sheet" will give you a great view of your portfolio's risk and rewards.
3 Ways to Become a Better Investor
These tips should help you improve your results both during downturns and, especially, when the bulls re-take control.
Three Changes to Improve Your Investing
A successful small change is much better for you (both financially and emotionally) than a big change that you can't make happen.
How to Improve Your Investing Habits
Consider this list of ten ideas to help improve your investing routine.