If you're raising cash, it's often best to look at your worst performers first, not your best performers.

Pull weeds to buy seeds.
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Cissy Hu's avatar
@cissyNovember 1
Love the "pull weeds to buy seeds" concept. Do you have a system for filtering for underperformers periodically or is it more ad hoc when you have a new idea you need to raise funds for?
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Todd Campbell's avatar
@ebcapitalNovember 1
Author
Ad hoc. I'm always aware of what I own that isn't working. If it's a 'forever' mindset idea, I'll let it mature/marinate (recent example is COIN). If it's a 'rental' mindset idea, I'll likely let it go if (1) I have a higher conviction idea (2) my market indicators/feel is telling me to boost cash to have dry powder for a pullback.
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Joey Hirendernath's avatar
Water the flowers, not the weeds :)
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Joshua Simka's avatar
Absolutely! And in most cases, your worst performers will have withered to such a small portion of your portfolio that even if they doubled, it wouldn't have much effect on the overall portfolio! :)
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Todd Campbell's avatar
@ebcapitalNovember 3
Author
Great point! And then the question becomes, can I make more money in another, better stock? Often, the answer is 'yes'
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