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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: substancep who wrote (34542)11/10/2000 12:33:42 PM
From: Mike Buckley  Read Replies (2) of 54805
 
a statement by UF ... that said portfolio management may be as important as stock picking.

Uh oh. Now I'm in trouble. Anytime I find myself agreeing with Frank something's wrong. :)

The reason I think portfolio management is supremely important is because it is at the very core of doing the stuff that allows an investor to sleep well. Each of us needs to decide our tolerance for volatility. As a stock position becomes a larger and larger portion of a portfolio, the portfolio's volatility tends to increase. Understanding one's tolerance for volatility, determining in advance the benchmarks that trigger the sale of a partial position to reduce volatility, and implementing the sale is the stuff that makes for good, sound sleep.

--Mike Buckley
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