Every time the Truly Rich Club recommends a stock, I usually buy the minimum or twice the boardlot. Now I have shares with 5 different companies, and with my monthly budget, I can only afford to buy the minimum boardlot for, at most, 3 stocks. All recommended companies are still under the buy below category, so it really pains me not to be able to buy shares every month for each of my stocks.

There are two things that I can do with this situation:

1. I can increase my monthly budget so that I can buy the minimum boardlot for all of my stocks, thus using the peso cost averaging method; or

2. I can choose to focus on 3 stocks, and sell the other two, to fit my monthly budget.

If I go with option number 2, what stocks will I retain and what will I sell?

Hmmm…what to do…what to do….

4 Comments on Hmmm….

  1. Carlos
    March 26, 2013 at 1:10 pm (5 years ago)

    Hmm… Even if you increase your monthly budget, I'd still recommend focus (one or two stocks) rather than diversification (various stocks) in this case. And then choose the ones with the highest upside.

    You're in it for the long haul (I assume, since you're part of TRC) so the temporary fluctuations (specially the downward kind) aren't really important to you. And that's the primary benefit of diversification, so…

    Plus, if you have an equity fund, you're plenty diversified already…

    It's really up to you though.

    Reply
  2. Jillsabs
    March 30, 2013 at 3:16 pm (5 years ago)

    Yeah, I plan on doing option 1 until the stocks reach the target price and then reevaluate to see what stocks I will sell so that I can go back to my usual monthly budget.

    Reply
  3. Jillsabs
    March 30, 2013 at 3:17 pm (5 years ago)

    True. I kind of have an idea what I want to do now.

    Thanks for the feedback!

    Reply

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