Fox Business - Tending Your Portfolio
I visited with Liz Claman today about portfolio management for individual investors. For most individuals it is emotions that drive most investment decisions. This is why the average investor "buys high" and "sells low". However, in reality, portfolio management is very similar to growing a garden. If a garden is not tended the weeds will overtake the plants and choke them out. Likewise, not harvesting the garden will yield no bounty as it rots on the vine.
A portfolio must be tended in the same way with losers being plucked from the portfolio so they don't weigh on overall performance, winners being harvested from time to time and the portfolio constantly being "watered" by adding money to the portfolio on a regular basis.
As usual there is never enough time to fully develop all the important points in short television segments.