This has involved selling some of my individual shares and replacing them with collective investments - notably Vanguard UK Equity Income fund and the more diversified Lifestrategy funds which formed the basis for my latest book ‘DIY Simple Investing’.
So far this year I have sold half of my portfolio - a dozen or so individual shares, which means 12 fewer annual reports, 24 fewer dividend receipts to monitor and less to write up for the blog - hence it has been a little quiet recently.
I have taken advantage of the lovely settled weather over the past couple of weeks to enjoy a return trip to Pembrokeshire and enjoy walking the coastal footpath - this time near to Strumble Head (just below Fishguard) - highly recommended!
|Strumble Head Lighthouse|
I was reminded of the benefits of not checking on your portfolio every day when I re-read ‘Smarter Investing’ and also my article on some aspects of successful investing from July following the recent market turbulence. Nobel prize winning psychologist Daniel Kahneman found that a loss yields roughly twice the psychological effect of an equivalent-size gain ....mmmm.
The chances my portfolio of shares will be up on any particular day is around 50/50 - every other day therefore I am likely to get a double whammy - not good for my emotional equilibrium.
Interestingly, the longer the gap between reviewing my portfolio, the lower the chances of registering a loss.
Daily is ~48%
Every 10 years is ~20%
So, the intention will be for me to move from my daily fix to a weekly review and from there to establish a once-per-month regime. Lets see how it goes!
With less shares to monitor combined with a much less frequent viewing of my investments I will need to find a new hobby to fill all the extra time - maybe something more physical and then the coastal walks will be a little easier!
As ever, slow and steady steps…