Five 'mind tricks' investors can use to fine tune their portfolios

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Peter Hodson: These strategies work and are mainly common sense, but many investors may not have heard of them

Take a look at all of your current stock holdings. Then, one by one, ask yourself how you would feel if each company was suddenly taken over, at a pretty nice 30 per cent premium. Now, most investors would say they would be happy with a takeover. But we want you to be not happy at all. You want to own stocks with more than 30 per cent upside potential. You want growth stocks, such as Xebec Adsorption that are up 207 per cent in the past year.

Peter Hodson, CFA, is Founder and Head of Research at 5i Research Inc., an independent investment research network helping do-it-yourself investors reach their investment goals.

 

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