Dan's portfolio business plan

[cannew]

(05-13-2014, 12:43 AM)earthtodan Wrote: Exactly. I have a Google Docs spreadsheet that calculates my allocations, streams prices and tells me in real time how many shares I need to add to (or subtract from) any position to bring my portfolio into balance. If I want to add a new position, I don't have to manually rebalance my allocations, the spreadsheet does it for me. This method takes some of the thinking off my plate and also frees me from round-number psychological targets like $1000's and %'s.

If one wishes to rebalance than this sounds like a good system, however, I would not sell good stocks just to rebalance.

(05-13-2014, 12:43 AM)earthtodan Wrote: One thing that bothers me a little is that "Y" varies with the stock price. If the stock goes down and the yield goes up, should that change the investment thesis? That could get a little messy. I'll have to sort that out. Ideally I'll come up with a target price separate from the conviction level.

For me that's my initial watch point. I want the price to go down so I can buy more of the stocks I own and increase my yield. I'd gladly add more of one stock (even if it means I own much more of it than any other) if I could buy it at a value price.