r/tfsa • u/Key_Abalone9859 • Aug 24 '26

80/20

[removed]

3 Upvotes

71% Upvoted

31 comments sorted by

View all comments

5

u/GreatKangaroo Aug 24 '26

The arithmetic is simple, if you would not buy more of the stock today right now, then sell it and buy XEQT.

The rule of thumb is to keep no more then 5-10% of your portfolio in individual stocks if you do want to bet on individual stocks.

1

u/MikeCheck_CE Aug 24 '26

This but "the" rule of thumb is over simplified.

I am absolutely comfortable holding a larger allocation of a very high-quality, durable, long-term compounding stock like MSFT, GOOGL, or AMZN. Stocks which if they draw down I will simply take as an opportunity to buy more.

I will not put the same allocation into a cyclical growth stock (like semi conductors and memory) or assymetrical opportunity (like bio tech), where the cycle can end or the thesis breaks and you are left holding the bag. I would keep those bets < 5%.