02-11-2014, 09:05 AM
(02-10-2014, 09:46 AM)hendi_alex Wrote: There is no reason to immediately go shopping just because cash is burning a hole in one's pocket. Make a list of buy candidates, then decide on an entry point, and finally sit and wait patiently on the price to come to you. As far as whether to look for new candidates or add to existing ones. To me that only requires the answer to two questions. Are the existing holdings the best value in the current market and will adding shares take the position closer to target weighting?
I am still in the construction stage of my DGI portfolio, and there are some core positions I want to establish. The target weighting will come at the end of summer when I retire and can access some currently locked-up retirement funds. Between now and end of summer, I plan to develop my "investment plan", so as to have a roadmap for deploying some significant savings in a half a year. Currently, all but one of my positions in my DGI portfolio is less than 2%. The one I am overweight in (SO) has been a huge cash cow and am selling it off annually to fully fund my Roth for the year. Also sold some last year to gift part of a downpayment on my daughter/son-in-laws first home purchase.
Thanks for your help, Alex. -Chris