Buy Hold Rant
My rebalancing strategy: trimming winners, concentrated investing vs diversification
11/4/2025, 8:09:59 PM
Economic Summary
- The speaker uses a discretionary rebalancing approach, trimming positions when they seem overvalued rather than following a fixed schedule; this reflects active risk management and timing considerations (examples: RKLB, HOOD).
- Momentum buying is viewed as higher risk because purchases made after large price increases raise downside exposure; instead the speaker prefers accumulating names when cheaper, citing RIVN and BMBL.
- Trimming does not equal loss of conviction: the speaker still believes in the long-term growth prospects of companies even while taking profits to manage portfolio risk (noted for Rocket Lab and Robinhood).
Bullish
- Maintains long-term conviction in names even while trimming near-term exposure.
- Accumulating Rivian as a long-term position.
- Accumulating Bumble as a long-term position.
Bearish
- Trim positions when a stock appears overvalued to reduce downside risk.
- Buying into momentum after big price run-ups increases downside exposure.
- Speaker trimmed Rocket Lab and Robinhood despite liking them because prices ran high.
Bullish tickers
RIVNBMBLHOODRKLB
Bearish tickers
HOODRKLB
HOOD
Bullish
Still believed to have a bright future; long-term conviction remains.
Bearish
Trimmed position due to perceived overvaluation despite liking the company.
RKLB
Bullish
Speaker still loves the company and expects continued rapid growth.
Bearish
Position trimmed because price ran higher than expectations, increasing risk.
RIVN
Bullish
Actively accumulating as a long-term holding.
BMBL
Bullish
Actively accumulating as a long-term holding.