Concentration

[hendi_alex]

I think that the re-balancing question must be answered one stock at a time. Why did the position become overweight. Indiscriminate re-balancing could just skew the portfolio from a bias toward out performers toward one dominated by under performers. If the excess weighting comes from an expected bounce in a value position, then perhaps an adjustment is called for. Then the proceeds can be moved toward another value stock that happens to be in the value range. At any rate, I can think of some situations where re-balancing might be desirable and others where re-balancing is not so desirable. For me, not a white and black answer to cover all situations. Since I'm moving more of my investing into ETFs, the question becomes much less of an issue.