A periodic portfolio health check to identify and weed out laggards in your portfolio and replace them with potential winners is essential
January 07, 2022 / 09:12 AM IST
The weakest link in the chain is uniquely positioned. Treated reverentially, because on its sustenance depends the well-being of the rest of the fetters, it is also seen as the most likely candidate for censure, and ultimately, replacement.
Think of a portfolio as an ecosystem marked by a constant binary — winners and laggards. For the investor concerned, the difference is clear. He characterises winners as those assets that have given him an annual return of, say, 20 per cent or more. The…