When building portfolio, it is ok to deviate temporary from target allocation to pursue for attractive and undervalued stock. This temporary deviation may make the portfolio looks concentrate and undiversified. But if the other stock is fully valued or not cheap enough and this stock is so undervalue and attractive, it will be stupid not to buy more just because we want to keep our portfolio in a well diversified manner. Those deviation shall be adjusted back later by continuing inflow of investment or rebalancing.
No comments:
Post a Comment