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Review portfolio regularly from "summary" of A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing (Twelfth Edition) by Burton G. Malkiel
It is imperative for investors to keep a close eye on their investment portfolios and review them regularly. This practice is crucial to ensure that the portfolio remains aligned with the investor's financial goals and risk tolerance. By reviewing the portfolio on a regular basis, investors can make necessary adjustments to maintain a balanced and diversified investment strategy. Market conditions are constantly changing, and what may have been a sound investment decision in the past may no longer be suitable in the present. By reviewing the portfolio regularly, investors can stay informed about any changes in the market environment and adjust their investment strategy accordingly. This proactive approach can help investors avoid potential losses and capitalize on new opportunities as they arise. In addition to monitoring market conditions, reviewing the portfolio regularly also allows investors to assess the performance of individual investments within the portfolio. By evaluating the performance of each investment, investors can identify any underperforming assets and make informed decisions about whether to hold, sell, or buy more of a particular investment. Furthermore, regular portfolio reviews can help investors rebalance their portfolios to maintain the desired asset allocation. Over time, certain investments may outperform or underperform relative to others, causing the portfolio to deviate from its original allocation. By rebalancing the portfolio, investors can realign their investments to match their target asset allocation and risk profile.- Reviewing the portfolio regularly is a fundamental practice that all investors should adopt to ensure that their investment strategy remains on track. By staying informed, monitoring performance, and rebalancing as needed, investors can make informed decisions that will help them achieve their long-term financial goals.
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