For simplicity, let's say I plan to invest $10/WK, and I want 50% my portfolio to be BizA, 25% BizB, and the remaining 25% BizC.
It's easy the first week. Buy $5 of BizA, and $2.50 of each BizB and BizC.
What happens after that though? Let's say BizB had a great week, and now my position values are:
BizA: $5.00 BizB: $11.00 BizC: $5.00
How should I allocate the next week's $10 of purchases? Should I continue buying $5/$2.50/$2.50, and not consider the current value of each position, or seek to balance the ratio of each position back to 50%\25%\25%?
Submitted July 01, 2021 at 08:27PM by neocamel https://ift.tt/2TszDsj
