Asset Allocation and Effective Portfolio Management Part Two

If you’ve already read Part One, you will understand your circumstances and attitude to risk, have calculated your cash reserves and determined your investor profile.

Now it’s time to plan a personalised strategy for effective portfolio management tailored to your personality, lifestyle and desired returns.

Collectively, we are value investors. But we are also individuals who each has quite a different approach when it comes to how we choose to divide up our portfolios. Some of us are cautious investors who only want to buy into low risk, large cap businesses. Others are bold, equally happy to own shares in micro as large caps, exposed to greater risk for greater potential reward. There are yet more who fall somewhere between these two extremes idenfifying most with a mindful or confident profile.

Understanding who you are as an investor and determining your asset allocation model is just the beginning and already covered in Part One of this eBook. In Part Two, we move forward into the practical world of value investing, helping you to answer questions such as:

How exactly should you divide your equities section?
How many stocks should you own?
How much should you invest in each holding?
What should you do once those investment ‘slices’ start to grow?
When is the best time to sell a stock?
When should you react to news of an impending recession?

Based on our Long-term Profit (LTP) equation we have developed a portfolio management philosophy of principle over panic, facts over fear and allocation over activity. Using this to guide stock selection, slice size model and rebalancing strategy enables us to achieve consistent, market-beating returns; regardless of our personal specifics and investor profile.

Whatever your strategy, applying our philosophy to your portfolio management models steers you away from unnecessary impulsive activity that can have a serious impact on profits. We show you how to navigate a media that profits from doom, directing you to actual economic indicators that inform your decisions, inspiring intelligent actions that lower expenses and support great returns.

As well as lots of information, this eBook contains practical tools and advice to help you put your personalised portfolio management strategy to work:

Calculate the ideal slice size model for your equities
Learn how to adapt your portfolio around your changing circumstances
Easy steps to ceating a new portfolio or rebalance an existing one

Follow our live case study to see how a STRIDE portfolio performs in real time in the real world.