What differentiates most the winning portfolios from the losing ones is TIMELY EXIT from laggards.
Get this funda right, and you will do better than MOST people.
Ram and Shyam hold two stocks A & B say at 100 each.
Ram
A goes to 200 in 5 years. B goes to 50 and back to 100.
His portfolio is up 50% in 5Y
Shyam, A goes to 200 & he sells B at 80 in 1 yr, invests in C at 100 that goes to 180 in next 4Y.
His portfolio is at 360, up 80%
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