07-02-2021, 04:00 AM
How to maintain ratios in a portfolio?
<!-- SC_OFF --><div class="md"><p>For simplicity, let's say I plan to invest $10/WK, and I want 50% my portfolio to be BizA, 25% BizB, and the remaining 25% BizC.</p> <p>It's easy the first week. Buy $5 of BizA, and $2.50 of each BizB and BizC.</p> <p>What happens after that though? Let's say BizB had a great week, and now my position values are:</p> <p>BizA: $5.00 BizB: $11.00 BizC: $5.00</p> <p>How should I allocate the next week's $10 of purchases? Should I continue buying $5/$2.50/$2.50, and not consider the current value of each position, or seek to balance the ratio of each position back to 50%\25%\25%?</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/neocamel"> /u/neocamel </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/obyydr/how_to_maintain_ratios_in_a_portfolio/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/obyydr/how_to_maintain_ratios_in_a_portfolio/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><p>For simplicity, let's say I plan to invest $10/WK, and I want 50% my portfolio to be BizA, 25% BizB, and the remaining 25% BizC.</p> <p>It's easy the first week. Buy $5 of BizA, and $2.50 of each BizB and BizC.</p> <p>What happens after that though? Let's say BizB had a great week, and now my position values are:</p> <p>BizA: $5.00 BizB: $11.00 BizC: $5.00</p> <p>How should I allocate the next week's $10 of purchases? Should I continue buying $5/$2.50/$2.50, and not consider the current value of each position, or seek to balance the ratio of each position back to 50%\25%\25%?</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/neocamel"> /u/neocamel </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/obyydr/how_to_maintain_ratios_in_a_portfolio/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/obyydr/how_to_maintain_ratios_in_a_portfolio/">[comments]</a></span>Kind Regards R