Personally, I think one year on a 3-5 year journey is too soon to give up on a time tested investment Foolosophy. With 15 years ahead of you, there is plenty of time for companies in which you have conviction in their long term (3-5 years or longer) business growth to realize their potential.
Just be clear with yourself whether you are making investment decisions because you are unhappy with the market performance of your positions or because you have lost faith in the fundamental investment theses of your invested companies.
If you are set on selling, one strategy would be to divide your companies into 4 groups. The first group is No Way In Sell Do I Part. These are the companies in which you have the highest conviction and would not want to sell even if the earth was coming to an end. The second group is It Would Really Bum Me Out To Sell. These are companies in which you have strong conviction but it wouldn’t make you question your faith in all things Foolish if you did.
Then the third group is It’s Not Like I’m Married To This Company, investments in which you have a positive conviction in their future potential but you wouldn’t lose any sleep if they weren’t in your portfolio. And finally the fourth group, What Was I Thinking?, includes those companies in which you have the least conviction or cannot remember what they do or why you opened positions in them.
Then, once you have your portfolio organized, you take the last group and rank each company in order of highest conviction to lowest conviction. Then you start liquidating from the bottom of the list. Easy peasy, right?
Fuskie
Who notes if you’re wondering what “conviction” means, it’s the depth of feeling you have in a company’s ability to achieve its growth potential and succeed as an investment over the long term…
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