"The star of the portfolio is a rare and wonderful thing; its value is also rarely recognised and, typically, it is strategically mismanaged" Bruce D. Henderson
In other words, rather than trimming your star stocks back down to an "appropriate" size as advocated by the portfolio rebalancing mob, pay closer attention to the rest of the stocks in the portfolio (which are a drag on performance). By cutting some of these holdings, you free up funds to invest in the next star performer. Risk is reduced by adding more (potential) stars to a portfolio, rather than cutting the proven star performer (assuming that the investment thesis remains robust).
The second half of 2021 is looking primed for growth stocks to make ATHs.
Best of luck to all.
CDA Price at posting:
$17.66 Sentiment: None Disclosure: Held
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