Wednesday, 7 April 2010

Wealth Maximising Strategies for your Portfolio

Buy only GREAT (good quality) stock.

Buy at a bargain price, when the upside reward/downside risk ratio is highest. Be patient.

Sell the losers.  Stay with the winners.

Sell the losers early.  Reinvest into GREAT stocks.

Sell the under-performers early.  Reinvest into GREAT stocks.

# Sell the overpriced stocks to lock in the 'transient bubbling' gains (PE > 1.5x Signature PE).  Reinvest into GREAT stocks.

Reinvest and Stay with the GREAT winners for the long term.

Stay concentrated.  Do not overdiversify. Invest big.

? Tactical Asset Allocation when the market is OBVIOUSLY too expensive or too cheap.  (Difficult strategy to apply consistently).


# Warren Buffett's investment in PetroChina



Also read:

Growing at 15% a year - what does this entail?

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