November 28, 2007 / White Oaks Wealth Advisors

Lumpy Portfolio?

I felt a lump as I reached down to my side the other day. No, not that kind of lump! This lump often gives me comfort. You see, it’s my wallet, and feeling it communicates to me that it is still there and I haven’t misplaced or lost it. Maybe you’ve lost your wallet or purse before like I have. The hassle of getting everything back to normal is much more difficult than we want it to be, not to mention the lost cash we may be carrying as well. This time it seemed larger than normal. I checked. No, it was not because it was “stuffed” with large (or small) denomination greenbacks.(Darn!). It was due to the accumulation of “stuff” that for the most part was no longer relevant. Membership cards, hotel, airline and car rental points cards, etc.I don’t remember the last time I used them. They seemed relevant at one point but now they were just “lumpy”.

Investment portfolios also can get “lumpy” over time. A piece added here and there as capital is available. A friend or relative recommended some, and then “hot” ideas represent some more. At one time all were relevant and appropriate. Is it now? Does it represent the best thinking available and are all the parts of the portfolio working together as they should? Does it represent your current goals and thinking or is it a history lesson for where you have been?

Part of the discipline of portfolio management is to keep the portfolio fresh and relevant to meet your personal needs and longer term objectives. The best idea of ten years ago may or may not be relevant today.

The lump of my wallet is more reasonable and relevant now. Whew! I do feel better. My portfolio, you ask? I’ve always prided myself in “eating my own cooking” when it comes to my personal portfolio. Well, most of the time anyway! I do still have one stock in my portfolio that is an outlier. I purchased it when we were managing the pension plan of a company and I thought they were doing some pretty neat stuff. Since then the pension plan was converted to a 401(K) and self managed. The company has done well but I’ve lost touch with the company and management. This one last holdout will be donated to charity this year. Then my portfolio will be relevant, appropriate and not lumpy anymore.

The foregoing content reflects the opinions of White Oaks Wealth Advisors and is subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that the statements, opinions or forecasts provided herein will prove to be correct. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation.

Past performance may not be indicative of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns.

Securities investing involves risk, including the potential for loss of principal. There is no assurance that any investment plan or strategy will be successful.

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Investment advisory services provided by White Oaks Wealth Advisors, Inc. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation. Securities investing involves risk, including the potential for loss of principal. There is no assurance that any investment plan or strategy will be successful.