I may raise some cash tonight/tomorrow.
Here’s my philosophy on raising cash:
- you sell the stocks you are unemotional about
- you sell the stocks that you are slightly positive/breakeven/small loss on
- you don’t get upset about raising cash because the number one rule is to protect your cash, not lose it
so for example:
I would not sell $PLTR or $HOOD in my portfolio
- great averages on both
- deeply concentrated
- long term conviction means dips are buyable
However, I would sell:
- the 50 shares of $GOOGL I bought last week at $195 (currently at $200 so have some margin of safety)
- the 400 shares of $SNAP I bought at $10.70 as a swing trade
If Google and Snap both go up 20% in the next month, it would be annoying but not something I stress over.
However, if I have an extra $20K in cash that I can use to get more $PLTR and $HOOD that have averages well below the current prices…especially if they see a big macro driven decline…I would be happy getting more of those two companies.
Raising cash is really just a question on mental peace to me. You sell what you don’t care about and consolidate into long term convictions on dips that are easily buyable.
The key thing here is you need cash to buy those dips and that only comes from making tradeoffs in the portfolio.
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