Rebalancing your pie will equalize the actual value and the target value of your stocks. Youāll sell shares from your overweight slices and buy more of your underweight ones.
Thanks. In an example where Microsoft is 14.01% of 12% and Apple is 11% of 10% allocations respectively, whatās the harm in letting that go and never tapping Rebalance button?
Because if those kind of stocks above are growing, I donāt really want to be selling any.
Thanks.
You are right. There is no need to rebalance frequently. The purpose of diversification is to reduce risk. So long as no one stock is more than 5% of your total portfolio I think you should be fine.
Oh 
(P.S Teslaās only there because it grew so fast, going 100% in on self balancing pies so no Tesla will be bought in a long time until it gets to its 20%. And if you want to start a Tesla argument please take it below
)Tesla/NIO/Nikola/SOLO
(PSS if you want to know what my pie looks like, you can see it here: https://youtu.be/BE93D1R7zg0 )
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And Iām sure itās just started growing again. You need to dump more money into everything else to keep up now 
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Itās growing faster than Iām putting money in, and Iām not selling lol
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50% bros:
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Never thought someone here would beat me 
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Could I ask why no more than 5%?
Only speaking personally my S&P 500 will be my bigger one when I can get it all moved into my PIE ETF and think it will be more than 5%.
If it was 10% / 15% would you still rebalance with an ETF only PIE pie perhaps once every 12 months? Roughly?
Just trying to figure it out prior to the transfer 
He said no stock more than 5%. ETFs are made up of many stocks, S&P 500 being over 500 stocks, so it can be over 5% for sure and youāll have a very diversified portfolio
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Nick, I seem to remember that SMT has approximately 10% Teslaā¦
If that is the case then you its actually lightly over half of your investment portfolio 
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I was thinking about individual companies. It would be fine to have an ETF at more than 5%. I am only going by the observation that most professional portfolio managers try to keep each holding below 5%. Of course there are exceptions. Terry Smithās Fundsmith is presently 6.9% MSFT and 5.2% PYPL. Baillie Gifford American fund has 8 - 9% positions in SHOP, TSLA, AMZN, W.
By taking a 10% position you take more risk. Those who manage money for widows and orphans want to minimise risk and so adopt a 5% or maybe 10% ceiling.
Strangely I find my own portfolio is 8.7% in one stock, PG. I didnāt plan that, just happened by natural growth, and havenāt yet thought I should trim it.
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It all depends on your conviction level and risk toleranceā¦ real high conviction can only come after you have put in a lot of work and research. For myself, I have a few pies with the usual suspects and one pie that has most of my capital with only 5 stocks. This is my high conviction pie. Very volatile but if my investment thesis plays out within the ranges I think they will, it should result in high returns. But this is not for everyone, probably not for most. You need to be willing to put in the work and be comfortable of seeing up to 50% drawbacks.
Very interesting info. Itās definitely a good piece of advice to remember.
Based on this advice, my pie is 15-18 instruments of decade established tech companies (Apple, Microsoft), along with decades established dividend companies (3M, AT&T).
At what point would you worry about these getting unbalanced?
Sounds like a good portfolio. I personally would not worry too much. Maybe over 20% in one single holding, but still it becomes a personal choice. I would let it go, but most people would feel more comfortable with trimming it down.
My biggest investment mistakes can be simply summed up in selling winners too early. I have had to learn (the hard way) to let my winners run. Peter Lynch says: āSelling your winners and holding your losers is like cutting the flowers and watering the weedsā.
One of the biggest advantages of investing through the pies is that you add the same proportions to all your holdings, hopefully regularly. This way, you are adding to your winners along the way, which you might not feel comfortable doing if you were making buy decisions on a stock by stock basis. At the same time you take advantage of dollar cost averaging. All ideal for long term investing in quality companies which it sounds like you are doing.
This is not advice, I am not an registered advisor. You need to do your own homework and make your own decisions.
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Thank you. Iām happy with my pie and only a couple of months into investing so very low risk for me at the moment.
I like the idea to have an instrument at most maybe 16-20% of pie. So will keep an eye on that.
The auto invest feature is brilliant so well done to T212 for that. Looking forward to being able to input current investments into new pies.
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I am trying to get my ābuy listā under 75 shares, If I can and if pie inside pie function gets released, I might be able to use it 
I went from 120 instruments to 47, clearing out companies I donāt think will recover well and redistributing funds to companies that I believe will do well.
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With this auto-invest feature will i be able to include my current investments into the pie or will i have to sell them and then use that money on auto-invest