" ....but we have to make sure that we don't take any unfair advantage over Buffett's portfolio. If we use our dividends as cash, then how about we do the same for Buffett's portfolio?"
I'd say that we need to take cognizance of our following 3 Rules:-
5) The final list of 10 stocks chosen will remain unchanged in the SI Portfolio for a full 9 month period. There will be no removing or adding of stocks in that period of time unless a stock is de-listed from its exchange.
6) After 9 months has elapsed the SI Portfolio can be changed by a maximum of two stocks per year. These new stocks will be chosen and voted for in the same way as were the original 10 stocks.
8) Should a stock be removed from the existing Buffett Portfolio then another stock from Buffett’s holdings, preferably from the same sector, will be added. That stock will be selected by agreement between Sergio H and bruwin. If we do the same for Buffett's portfolio then how do we decide, on Buffett's behalf, which of his top 10 stocks to sell off and replace?
According to (8) above, Buffett's stocks remain as they are until he sells off one of those 10 stocks. Only then do we replace that stock with another from his holdings.
According to (5) and (6) we cannot replace anything for 9 months. After that time we are at liberty to replace 1 or 2 stocks. If we replace a "loser" that we bought for $5000 and it's now worth, say, $4500, then the way I see it we only have $4500, plus accumulated Dividends, available to buy another stock.
If we replace a "winner" that we bought for $5000 and it's now worth, say, $6000, then the way I see it we have $6000, plus accumulated Dividends, available to buy another stock.
Of course we can still spend only $5000 to buy another stock and put the balance of $1000 into our "Available Cash Fund" which would add to our overall Portfolio gain.
Do we change/amend the Rules?
Is there anything else we would like to do? |
