I’m currently wrestling with a dilemma. Two significant positions in my portfolio have dipped by 15%. These are solid companies that I intend to hold for the long term. However, I’ve reached my allocation limit for them in my portfolio, so I can’t increase my holdings. I’m curious, how do you handle such situations? Do you choose to patiently wait it out, or do you consider adding more & averaging down even when the stock has already reached its allocated percentage in your portfolio?
“Averaging down” is kinda an illusion. Buying more doesn’t make the stock you already bought any cheaper. Just ask yourself, “would I buy it at this price?”
All that said, never invest more in stonks than you’re willing to lose. It’s basically a casino after all.
You’ve reached your allocated percentage. That’s what makes it a portfolio and not a casino. I suggest waiting patiently.
