I have about 30 positions in my T212. 3 ETFS and rest individual companies. I am considering if and how I should trim these down to nearer 20 mark as I feel some companies I cant keep up with as much as others. I have trimmed down from about 35 to 31 currently, and that was easy as were some companies I just didn’t feel I wanted long term.
Now my real question is what rules are good to adhere to when trimming down portfolio by cutting whole positions, here are my current thoughts/rules I am mulling over.
Cut down on stocks that I have 2-4 similar ones. (I prefer MA, V & StoneCo to Square)
Cut down my single stocks in an industry I understand less than others. (maybe BAE, or AT&T)
Cut down income plays (high dividend) like AT&T in favour of growth and dividend growth stocks. This is due to being in my 30s so happy for higher risk (not stupid risk though…)
Cut down stocks that I have gut feeling I don’t like.
Here is my current list for reference, ones in bold thinking of getting rid:
Johnson & Johnson
StoneCo Lloyds Square
NextEra Energy BP Shell
(sell either BP or shell, not both to keep some exposure to them)
(recently sold Redrow other housing stock to trim holdings)
(I like them as solid stock with dividend, but wonder if long terms there isnt as much upside as elsewhere)
(On the fence, i dont have many high yield stocks so wonder if should have 1 or 2 like this for balance, but dont see any real growth)
Fidelity China ETF
VanEck Video Games ETF
Vanguard S&P 500 ETF
That would still leave me with about 25 holdings.
Thoughts and ideas. I am perfectly happy to hold all of these, but feel 30+ is bit too many to keep an eye on.
This speaks for itself if you have a gut feeling about them get rid of them. The rest Im not too sure as I’m sure you bought into them for one reason or another. Do you really need to trim them down or what’s the reasoning behind trimming? Is it simply to put more into the ones you feel more comfortable with?
When I went through looking I did not rate J&J, Merek, Pfizer, Coca-cola, Visa/Mastercard. And out of T/VZ/CMCSA it was Comcast looking the better out of the three (not by much). McDonald’s didn’t make the cut, but I would cut it from your list.
I’ve mentioned a few times before that bank stocks are dead to me. SP will be the same or worse in a decade. They have nothing going for them, no innovation. Would I jump on a Monzo/Starling IPO possibly. Barclays, Lloyds, Metrobank meh. I’m not touching BAC or JP Morgan either.