Portfolio Reflection
Like many of us, I suspect, I have reflected on my portfolio management over the past year. My PA is down around 24% YTD, which is far from ideal. However, it could be much worse.

I've made many mistakes, of that there is no question. However, I have also learned some valuable lessons. This isn't to say that these should be followed by anyone or everyone, as we all manage our portfolios differently, but here are some principles that I plan on following.

  • I've always been quite 'gung-ho' with position sizing; once I decide something is a good idea, I struggle to exercise restraint and slowly build a position and instead reach a full position in a number of weeks. This has undoubtedly cost me gains over the past year.

  • Following on from my first point, in the future, I plan to let position sizes build themselves, lowering my maximum cost basis to 15%

  • Options are difficult; despite having much success on the short side, I've set tighter boundaries for losses and gains after some costly errors. Timing is critical to options; in the future, I will be happy to pay a higher premium in exchange for extra time. I think @investing can testify to this.

It's not all doom and gloom! I've highlighted some ways I plan to refine my process, but in general, I'm pretty comfortable with my PA. Looking at the stocks and valuations in my portfolio, I'm excited to see how it performs over the coming months and years.

Stay positive troops, this will pass.
Conor Mac's avatar
Great reflection, appreciate the candour
Eric Messenger's avatar
I don’t worry at all about my portfolio being down. I have the confidence & conviction to stick to my guns in the short term (1-3 years). Warren Buffett talks about being down 2-3 years consecutively and sticking to his guns and coming out wealthy on the other side. If I believe in it I’m going to continue adding, Mr Markets just giving me an opportunity to expedite my retirement.

Options are another story, you got more brass than me🤣
Rihard Jarc's avatar
The things you learn (and feel) in down markets are key. It makes you a better investor long term.
Joey Hirendernath's avatar
Thank you for this honesty pie :)