Seth’s Godin: In defence of the tree emoji 🌳

The tree emoji celebrates the patient and generous acts of planting seeds, watering them, caring for them, and then, in a generation, you have a tree.

Simple growth. With patience. (I prefer the deciduous tree instead of the evergreen, because the leaves coming in and falling off are part of the deal).

Put me down for the tree emoji.

🌳

Seth’s Blog: In defence of the tree emoji, May 9, 2017, at 01:10 AM

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Fred Wilson’s golden rules for investing – averaging & rebalancing

Two of my favorite techniques in investing are dollar cost averaging (when buying and selling) and rebalancing.

In public stocks and other marketable assets, these techniques (averaging in and out) are particularly important. I believe you can spot a long term trend and ride it. But I do not believe you can spot a market bottom or top until it is in the rear view mirror. So that is why I like to average into and out of a position over time.

Rebalancing is even more important. If you have a position that has worked incredibly well and it starts to become a very large portion of your overall portfolio, it is wise to take some of that position off the table and reinvest it in other attractive assets. This gives you more diversification, which I believe is generally a good thing, and also de-risks your portfolio from a big selloff in the largest position.

Rebalancing – AVC, May 10, 2017, at 12:09 PM