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Portfolio Dilemma: Hold or Add More? (lemmy.ca)

submitted 1 year ago by [email protected] to c/[email protected]

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I'm currently wrestling with a dilemma. Two significant positions in my portfolio have dipped by 15%. These are solid companies that I intend to hold for the long term. However, I've reached my allocation limit for them in my portfolio, so I can't increase my holdings. I'm curious, how do you handle such situations? Do you choose to patiently wait it out, or do you consider adding more & averaging down even when the stock has already reached its allocated percentage in your portfolio?

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[–] [email protected] 5 points 1 year ago

"Averaging down" is kinda an illusion. Buying more doesn't make the stock you already bought any cheaper. Just ask yourself, "would I buy it at this price?"

All that said, never invest more in stonks than you're willing to lose. It's basically a casino after all.