Rebalancing a porfolio of individual stocks
Hi all, I would like to know when it makes sense( if ever) to take some profits if an individual stock becomes too large a part of one's porfolio.
For example, suppose we start with a 100k porfolio containing 20 different companies. Each stock then represents 5% of the total portfolio.
Let's say company B grows massively and now makes up 15-20% of the total porfolio.
Under what circumstances should you take some profits? I know Peter Lynch and others talk about the negatives of selling…
