Hi Victor & Rusmin,
May I check how to rebalance a portfolio? In the course you mentioned since investing is a probability game, each stock we invest should be of the same amount. So say I have 100k now, and I buy 10 stocks, each stock 10k.
And 3 years later, I have another 50k for investing. How do I allocate this additional 50k into my portfolio? Do I allocate this 50k to increase my existing stocks size, or look for new stocks? If for existing stocks allocation, some stocks maybe undervalue or fair value at that point of time, while others the price may be too high for entry.
So say 3 existing stocks (undervalue or fair value) can buy extra 15k, but the other 7 existing stocks cannot buy as price too high, then the portfolio will be unbalance as as the 3 stocks will now be 45k (15k each) while the remaining 7 stocks will be 70k (10k each)? It will not be the same amount anymore as capital allocation is more than the rest.
Also, say along the way, an existing stock in my portfolio becomes a irresistible buy, which is way below its intrinsic value, and all parameters are still strong, how? Do I buy? But if I buy this stock capital allocation will be higher than the rest and will not be of the same amount anymore?
Seek for your enlightenment please, thank you!
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