Motley Fool Money Bonus Episode: A Mailbag Extra!
Mar 1, 2020
Listeners get rapid-fire answers on how many stocks you need when you own ETFs and how to size a core-and-satellite allocation. There is a conversation about turning a growth-heavy portfolio into an income stream and practical tips for dollar cost averaging. The hosts explain what happens to delisted shares, debate how low bond yields affect expected returns, and confess their biggest investing mistakes.
AI Snips
Chapters
Transcript
Episode notes
Size Satellite By Strategy Not Rule
- Decide satellite sizing by its goal and risk profile rather than a fixed number of stocks.
- Use single-digit high-conviction holdings for modest outperformance or 20–30 smaller positions for high-risk, high-reward strategies.
Trim Winners And Kill The Weeds
- Trim for retirement by reducing oversized positions or selling a bit across holdings to preserve portfolio balance.
- Prioritise pruning positions >~15% and selling underperforming 'weeds' before cutting core winners.
Make Regular Contributions Not Market Calls
- Dollar cost average by investing a fixed amount regularly into the market or your chosen ETF, not by timing lump sums.
- Pay yourself first, set regular deposits, and buy your best idea when each contribution arrives.