A recent article by Ian Cassel really struck a chord with me. He sums it up in a tweet (see below) but you can read the full piece here.
The truth is, my portfolio has drifted recently (especially here on Strawman). I've kept my focus on the larger holdings, but I’ve admittedly neglected the growing tail of smaller positions. Many of these were intended to be "watching" positions, but if I'm honest, they aren’t supported by the level of conviction they deserve. Macro kafuffles and magic internet beans have distracted me from the business of stock-picking...
So I’m taking a page from Michael Steinhardt’s playbook and liquidating much of my portfolio on Strawman (which, thankfully, won’t incur any brokerage or tax penalties). Over the next few weeks and months, I’ll be reallocating the capital, as I intend to stay fully invested. In the meantime, I’ll likely allocate to a mix of ETFs to keep the capital working.
Just wanted to give you a heads-up in case you see a flurry of trades and wonder about the reasoning. To be clear, just because I’m liquidating something doesn’t mean I’ve lost faith in it; rather, it means I can’t honestly say I have the conviction to hold it right now.
(of course, you can guarantee anything I sell will almost immediately proceed to shoot higher after the fact...)