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Portfolio Dilemma: Hold or Add More? (self.personalfinancecanada)

submitted 1 year ago by mxwarp to c/personalfinancecanada

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I'm currently wrestling with a dilemma. Two significant positions in my portfolio have dipped by 15%. These are solid companies that I intend to hold for the long term. However, I've reached my allocation limit for them in my portfolio, so I can't increase my holdings. I'm curious, how do you handle such situations? Do you choose to patiently wait it out, or do you consider adding more & averaging down even when the stock has already reached its allocated percentage in your portfolio?

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[–] bionicjoey 5 points 1 year ago

"Averaging down" is kinda an illusion. Buying more doesn't make the stock you already bought any cheaper. Just ask yourself, "would I buy it at this price?"

All that said, never invest more in stonks than you're willing to lose. It's basically a casino after all.

[–] investorsexchange 1 points 1 year ago

You’ve reached your allocated percentage. That’s what makes it a portfolio and not a casino. I suggest waiting patiently.

[–] zhenbo_endle 1 points 1 year ago

Quote "Don't time the market"

If the stock's price only dipped by 1.5%, would you add money into it? If not, I'd suggest to wait and think again.