Help me understand the growth dilemma

Say my largest position in my pie is Apple at 15%, if it continues to grow eventually it’ll be 17.05% or even 18%. And in that example I will have to rebalance, and therefore 2-3% of my shares will be sold.

If shares a being sold all the time how am I meant to hit the potential growth target?

It’s your choice what you also. My method is no rebalancing only self balancing.

If you want your portfolio to grow with no intervention then invest by targets.

To try and counteract overgrowing stocks use self balancing as I do. Which means that stocks which haven’t grown as much will get more money put in them. Assuming all your stocks are going to grow at a similar rate, this puts money in the more undervalued stocks

To trim and reinvest use the rebalancing option. If some are overgrown and you don’t feel comfortable with it being that large in your portfolio, or you want to take profits, then this is a good choice.

There is no right answer, just do what you think is best for your portfolio


Thanks for that, will keep this in mind in the next situation.

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