Rebalance your portfolio annually from "summary" of The Little Book That Beats the Market by Joel Greenblatt
One of the key principles in investing is to regularly review and adjust your portfolio. By rebalancing your investments on an annual basis, you can ensure that your asset allocation remains in line with your long-term goals and risk tolerance. This practice involves selling off investments that have performed well and reallocating the proceeds into those that have underperformed. In doing so, you are essentially "buying low and selling high," a fundamental strategy for maximizing returns over time.
Rebalancing your portfolio annually also helps to mitigate risk by preventing any one asset class from dominating your portfolio. For example, if stocks have surged in value over the past year, they may represent a larger proportion of your...
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