It’s a simple strategy of adding to your better trees and cutting down your sick or dying trees. The reason this is done this way isn’t to gloat over the successful trees or to mourn over the dying trees, it’s to keep the entire forest healthy. It’s important to grow the most healthy money trees you can in order to increase and expand the forest further than originally thought possible.
For anyone new to this website, I actually do the things I write about. Some of my investments have been more successful than others, but it’s essential that mistakes are recognized and dealt with as early as possible and that successes are allowed to grow larger. It’s from these successes, the strong trees, that additional new seedlings can be planted and grown.
A lot of investors concentrate on owning and concentrating on just a few securities at a time. There’s merit to that method because it allows the investor to focus only on those few investments and perhaps use volume to increase their successes. But for me it’s a matter of analyzing stocks and taking small positions. And then growing them.
Once established, I monitor those positions for growth and success. If the company’s revenues, earnings and dividends continue to grow, I continue to grow my position. And as each position in turn becomes more and more successful over time, I end up with a forest of money trees bearing the maximum fruit.
And I love it when those lovely leaves start to fall toward me.