so i was talking to my friend earlier and he asked me for some advice. he says he has a portfolio of 20 or so stocks.
he had no system and would just buy random stuff that he thought would go up (what a ZIP). most of his stuff is up over the last 5 or so years but some positions are down.
so now he says he wants to become a value investor but most of his holdings dont fit his criteria for security selection.
he was asking me what to do, should he liquidate his positions and only keep the ones that he thinks fit his new style, keep all and just open a new brokerage account to do his new style investing, sell the losers and let the winners ride, or what?
p.s. he didnt say how much he has in his account but i think its around 50 grand.
If “your friend” can liquidate his unsuitable positions without tax implications, then he should just do that. There’s no real point in holding some random stocks if he thinks another balance is better for his needs.
ti sounds like he doesnt really know what he is yet and is just testing shit. i would tell him to buy etfs and use a simulation. he needs a concrete set of values.
personally i feel the value vs growth thing is retarded. in any investment you have price and growth, they are intertwined. there is a garp - growth at a reasonable price ideology. with that said, value usually outperforms growth because with growth ppl tend to overpay, so there is that bias. people who tend to say i want to be a value ivnestor or growth investor, should really just buy etfs cuz they dont know what they are talking about.