‘Investment is time, energy, or matter spent in the hope of future benefits.’
According to Wikipedia
However, when you are considering adjusting your market share there is only one reason for the change. This is change in your own personal circumstances. This should be the only time that you should consider moving your investments or changing how you are managing your investment portfolio.
When to adjust
To understand your investments you need to understand the risk and the length of time that they require to make you money. This means learning what investing is all about as a way to grow your capital. There is little point in going into the investment markets if you have no capital with which to fall back on, if you suddenly face an emergency.
You have to plan for the long term; a minimum of five years that you should be investing. But you need to consider the reason for creating growth; if it is for retirement then the longer that you have to invest and grow the money the better off you will be when you reach retirement age.
However, there are times in your life when changes occur and this will reflect in your portfolio, it is not when you just feel like moving capital around. This isn’t the best options for your money, you need to plan and stick to the plan until circumstances change.
The risk with your market share
Before you start investing, you need to be aware of the risks involved in investing. Discuss your concerns with a financial advisor; they will be able to judge the risks that you are comfortable taking. This ensures that when you have invested in a product you are happy with the risk involved with your capital. If this is the only money that you have, creating low risk options until you have built adequate capital could be your best option.
If you have planned properly, when there is a hitch in the investment sector and an investment isn’t performing as it should, you are fully aware of the risks involved with your capital and you are happy to sit and ride out the storm.
Some people have built their money with a different perspective and this can work too. They look at the options involved and set out a plan when an investment would require selling; this would need to have a set of guidelines that you work with allowing you to make the same decisions and to remove the emotional element out of your investment portfolio.
Emotion can be the evil that you are trying to avoid at all costs; it can cause more problems and can mean making decisions not based on fact.
Warren Buffet has made many statements that point to the investor removing emotion from their investments as a way to stay ahead of the investment game.
‘Good investing is about controlling your emotions and temperament. Buffet says it is temperament not intellect that counts the most.’
Published in Forbes.com.
Therefore, adjusting your market share is not something you should consider unless it is time for your annual review of your investment portfolio, only then make changes upon recommendations that are in-line with changes in your personal circumstances.