Explaining My Investment Portfolio – When to Sell – When to Average Down

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Hi i’m jimmy in this video we’re looking at answering some questions that i got about my investment portfolio so i recently did a video on my portfolio if you’re curious what stocks i own and i’ve made some moves and that led to some questions so i’m going to go through some of the things that we can do to try to improve our own investment portfolios how i’m building

Mine and mine is very it works for my situation but if your situation is different i got some thoughts around that as well so we know that the stock market over the past year has been this is this is a year-to-day chart over the past year it’s been down a decent amount right now it’s down about 23 percent so this could be a real problem so the question is how could

We make our portfolio stronger almost no matter how we’ve got our portfolio currently set up now before we jump into that i just want to tell you real quick about a website that we’re building where we’re analyzed where we’re creating a platform to analyze and value different stocks so far we’ve already built the discounted cash flow calculator but the plan is to

Just keep adding different ways to value different stocks so at some point you built a punch in a ticker when you do the website will kick back what the best valuation methods are for that particular company and what the stock is worth using each different valuation method ideally we do the research we see if the stock looks like a good long-term buy and hold and if

It is the valuation calculator can help us get there even faster now down the road after that we’re going to add financial statements we’re going to add the ability to analyze the companies listening to conference calls things like that we plan on going far with this and the advantage of signing up now before the website is official is that before it’s while it’s

Still in beta version the advantage of signing up now is that we are locking in the price so whatever you sign up for today you come over you sign up let’s say you sign up for an annual subscription well the price will never go up on you it’ll only be that cost and we’re just going to keep rolling out more and more features so if you’d like to sign up i will leave

A link in the description below if you’re curious for now let’s jump back to my investment portfolio okay so over the past few months one of the big changes that i’ve made to my portfolio is basically i’ve been averaging down different positions just to name a few i average down intel average down google average down uh metter facebook average down warner brothers

Discovery i actually added a decent amount to my warner brothers discovery position because these companies have fallen i’ve continued to average them down now i also have some companies that have gains in there have been a positive side for my investment portfolio i’ll come back to these in a minute and sort of what the plans are for me with these particular

Investments but basically what i have done is when you look at the market and what the market has done over the past year well i have gradually added more as the market has fallen i’ve gradually invested more money into different stocks no one stock in particular that’s been a situation by situation basis and i’ve just kept adding as the market has fallen because

It basically looks like things have gone on sale more now than ever before so for the reason behind that is my investment portfolio is the number one thing that i’m looking for is i’m looking for long-term buy and hold investment opportunities what companies am i going to buy today and hold for 5 10 20 30 years i plan on holding these indefinitely the key the way

I look for it when i do my research the thing i’m looking for is great companies that are selling at a good price and that the reason i kept buying is the stock market was falling is i thought they were good price when i first bought them the market kept falling so the price kept getting better and better which is why i have continued to average down but as was

Pointed out to me in a few comments on the my portfolio video that only works if you have capital to work with in my case i am adding capital to my portfolio but you can only average down if you can add capital otherwise you were sitting in cash and that brings us to the the positions that i have that have been up for me i’m adding cash every so often i’m not

Really dollar cost averaging i’m adding cash and when i do do i decide to buy a new position do i decide to average down it’s been you know i’ve gone in both directions if i see a great opportunity i’ll jump in a new position if i don’t i’m more than happy to average down but what if i didn’t what if i didn’t have the capital well one example is something like

Lockheed martin we saw lockheed martin is up lockheed martin since i bought it i paid about 335 or so for my shares 336. for the shares that i bought and since then the stock has done quite well if i had no additional capital let’s pretend that i have an investment a retirement portfolio when i can’t add any capital in fact i’m living off that i need to return

And this pullback is really killing me well one thing i probably would have done is i probably would have sold my shares of lockheed martin at any point above 400 when it got to about 400 i was like all right i think that was about fairly valued for me and if i had no additional capital coming into the portfolio the only way to average down is if i would consider

Selling my stock then so if my portfolio was set up in a way that i couldn’t add additional capital i would consider which positions not i’m not just selling the winners i’m selling the ones that look like they’re run of gone now for me a long-term investor lockheed martin is the type of company that i’d be happy to own for 30 years i have no trouble with it the

Fact that it will probably underperform over the next year or two because it performs so well over the past year is less of a concern for me because i’m looking for the 30-year you know whatever the trajectory is over the next 20 or 30 years that’s what i’m paying attention to but if i couldn’t add more capital to my portfolio this probably would have been on

The chopping block the other stock that i have in my portfolio that has been up recently is activision now activision i probably would have caught before i caught lockheed martin because activision like i said i got semi-lucky with this one i bought my shares around 63 dollars per share and shortly after i bought my shares the stock had a huge jump it was up like

25 percent because it was like two or three weeks after i bought the shares now i didn’t buy the shares because i thought they were going to get bought out i bought them because you can’t see it on this chart but shortly before this the stock was tanking because they were having trouble with management they were trouble trouble with how they were treating their

Employees and the stock was getting punished because of it i saw that and said okay big picture opportunity wise that looks like it could go you know that looks like that could be a long-term opportunity so i bought it and then microsoft announced that they were going to buy it stock has a huge jump now i have held on to my shares because microsoft is supposed to

Buy the company at about 95 per share at 95 not about 95. 95 per share this stock jumped to near in the mid uh early in the low 80s initially i thought about selling that day but i was like well they’re gonna buy to 95. i’ll wait for this thing to go up to 95. now you can see it’s sort of broadly speaking it sort of trended lower since the initial jump which often

Happens in a in a deal part of that is people aren’t sure whether or not the deal will actually go through the european union is trying to block it there’s questions about whether the american government will let the deal go through now even if it doesn’t i’d be happy to hold activision for a while i bought it because i thought it was going to be a good company but

If my portfolio if i could not add additional capital to my portfolio this one would have been on the chopping block right away as soon as it had this huge jump i’m up you know 25 30 percent coming you know a month into the investment yes i would sell i would have sold out there and then use that capital to average down some other positions now i probably wouldn’t

Have gotten my final positions to be as good as the my average cost is now because i’ve added additional capital but they would have been better than they would have been had i not sold these positions so almost no matter where your investment portfolio is or how you’re structuring it if there are opportunities for us to you know to improve our overall portfolio

Who’s to say we couldn’t was up 40 it can sell 40 of the portfolio 40 of this position average down some other ones because i really believe how we set up our portfolio during this market pullback huge market pullback what we do today is going to determine how good our portfolio does over the next 10 or 20 years if we position it correctly we could end up really

Making a killing if we don’t jump out too soon when we get when things get a little bit fidgety now if you’d like to sign up you get access to the website so you can value stocks and lock in your price now forever well i will leave a link in the description below and thank you so much for sticking with me all the way to the end of the video i really do appreciate

It thank you and i’ll see in the next video

Transcribed from video
Explaining My Investment Portfolio – When to Sell – When to Average Down By Learn to Invest – Investors Grow