Some interesting comments so far.
The conversation reminds me of a discussion I started a couple of months ago on Portfolio Management
I think the common thought here is conviction but conviction can disappear quickly as the SP keeps dropping.
This is not advice to anyone just how I deal with it after having poured too much good money after bad over the years.
I just don't do it with my smaller holdings anymore. I'd rather see the SP recover some and then maybe top up.
Scott Phillips once said to me, "You don't have to make it back the same way you lost it" You can always revisit it again later.
The majority of times I did this ended up badly, so I basically trying to avoid further capital loss.
It may very well be a case of missing an opportunity but in my experience if I had not topped up falling positions I most certainly would have been better off - not to mention the regret.
Hope this helps
Hi all,
Interested to hear how everyone determines allocation.
The inspiration for this question comes from my holding in SP3 which currently accounts for ~3% of my holdings.
The kicker is I’m 50% down on my holding so prior to its fall it would have represented more like 6% of my holdings.
I’m pleased with its recent performance as a business and also bemused by its poor SP performance. I want to buy more on this perceived disparity but struggle to allocate more to what I suppose remains a speculative holding…
open to general discussion or SP3 holders, whatever wherever this post takes you…