Portfolio Theory

in #btc8 years ago

Nothing is more of a headache than rebalancing your portfolio.

Supposed some of your assets grow faster than other, then you liquidate it to buy assets that are growing slower/losing value so that your portfolio is rebalanced.

Then it might mean that you're always slowing down your best-performing assets.
For example, I held only 1% of my portfolio in Bitcoins because my conservative guess is that it has 1% chance of growing dominance in future.

But this boy always grows to become 5-10% of my portfolio even after I try to spend it and rebalance my portfolio from time to time.

At the rate it is expanding, I'm not entirely sure portfolio rebalancing serves my best interest.