In our latest blog post, Jonathan Satovsky discusses how whether you are managing a portfolio or gardening, regular maintenance is crucial.
I just ordered myself some hedge clippers. Why? Because, you know, sometimes trees and plants get overgrown and you’ve got to trim back a little bit.
As it relates to portfolio management, what’s fascinating is, as I reflect on rebalancing and trimming outside positions, any time we try to do that, most clients get angry with us.
“Why are you trimming that?” “That’s doing great.” “It’s growing beautifully.”
But, sometimes when it’s overgrown it causes a tree to get unhealthy, it causes the branch to droop, and could cause all sorts of problems. So, every season you trim your trees just to keep them healthy. To keep them vibrant, keep them sustainable, and keep them growing.
So, that’s the concept of rebalancing right there, which is never popular, but it’s sustainable—and you’ll be happy over the long term on your path to Wisdom, Wealth, and Wellness.
Have a great day.