Think Like a Coach and Build an All-Star Portfolio.
When I think of Portfolio Management, I think of myself as a coach of a great sports team. How much capital and time you have to manage your team will dictate how many players you have on a team. If you have a smaller account size, or are just getting started with your investing, think of an individual sport like golf, tennis or boxing. You want to find the #1 player; you want to find the Tiger Woods, Roger Federer, or Mohammed Ali…the Champion.
As your account size grows and you develop healthier investment habits, think of yourself as that coach wanting to build the DREAM TEAM, and you get to pick the STARS of the team. Let’s say we are building a basketball team. We need 5 players who are the best at their position. In stock investing this is called diversification. So we need a point guard, a shooting guard, a forward, a power forward, and a center. Remember we are building the dream team so we want the very best at every position. So for every position we watch video tape, we talk to references…old coaches, teammates, friends, family, we make sure they have the very best fundamentals, and that their statistics on paper are always improving every game and every year. Once we have a thorough analysis complete of who is the best at their position we sign them up to play for our DREAM TEAM.
Now that our basketball Dream Team is built and ready to play, we put them on the court. Now it’s time to coach the game. As a coach we are looking for the 5 All Star players we hand selected to live up to our expectations. If they do, they remain on the team, if they don’t we drop the weakest players and bring someone in from the bench who has been showing great promise. Remember in sports and in stock investing, performance is everything.
As you begin to build your own growth stock portfolio or team, you have the ability to be the best coach of all time. You have the freedom and ability to pick the best high quality growth stocks, in the very best industries, showing the greatest strength of performance, so why settle for anything else. Decide for yourself how many positions you have open on your team (INDUSTRIES), choose the very best players at those positions (STOCKS), and monitor their performance daily (TECHNICAL STOCK CHARTS). When one player (STOCK) shows signs of weakness, gets injured or begins to under perform, cut them from the team and send in your next ALL STAR replacement.
The great news about learning to manage or coach your own growth stock portfolio is that you have total control over the portfolio or team you build. You get to choose how many positions, how many players, and how much you want to spend on them. You make all of the decisions and we at F.I.T. Stocks want you to build a DYNASTY.