This is probably your busiest time of the year. There are many distractions requiring your time: parties, shopping, decorating your home, etc. One of the most enjoyable to me is to find new investment ideas for the new year. A lot of investors take this time to evaluate their portfolios, prune out the positions that didn’t work and replace them with new ones.
I like to think that the new year is a new opportunity to make money. I would start with a blank piece of paper and outline a brand new portfolio. Then I’d imagine that I’m starting from scratch using only my brain and all the knowledge I’ve gain throughout the year. Usually this is done in a quiet place, no computers, no noise, just me. Once I’ve done the outline and selected my positions I would compare them to my existing portfolio. This is when the research and decision making begin.
I’d review each position in detail, updating my research and opinions about each investment positions. Next, I’d prioritize the existing and new ideas. Finally, I’d select the top 20 investments to keep for the New Year.
I’ve effectively proposed new investments that I’ve seen thru the year and matched them against the current positions in the portfolio. This process helps me prune the portfolio and keep it updated with new ideas.
I’ll be going thru this process the last week of the year. If you’d like to see my list for 2014 please post request in the comment section and I might shared them in a post (if I get enough request).
Thanks for reading.