- If you have too many holdings you can't monitor them properly
- Each holding should not account for too much or too little of your portfolio
- Review your portfolio and figure out which holdings you have highest conviction in
It’s surprisingly easy to end up with a messy portfolio, especially if you tend to buy holdings based on hunches rather than implementing a specific strategy. And when you have too many holdings that don't work well together, it becomes harder to keep track of them and portfolio performance can suffer. However, if you find yourself in that position, it isn’t necessarily complicated to remedy it – you just need to spend some time getting rid of the assets your portfolio doesn't need.