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Aritzia Inc. Subordinate Voting Shares (ATZ $99.72)
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Zedcor Inc. (ZDC $6.79)
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Axon Enterprise Inc. (AXON $727.13)
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MDA Space Ltd. (MDA $27.75)
With the famous quote of "Water your flowers and cut your weeds", this is something I overanalyze when allocating funds. I have names such as TFII, TRI, DSG, IFC, WELL, ISRG that have been struggling lately, but you often mention that once we see a recovery in the sector, these could rebound quickly. But in the meantime, you have high quality stocks that have been holding up well that I want to add to as well. So often times, I'm trimming some of these losers as they go down, but then they come roaring back and now you only have a small position in these names. Also, I like to hold high quality names and let them compound instead of trimming them all the time. How do you best balance this dilemma? Thank you!
With MDA and ZDC at smaller weightings, we would lean toward adding to these names. At the end of the day in a portfolio, one is always going to have names that aren't 'working'. If everything is working, it likely means the portfolio is not that diversified. Holding onto the laggards can be frustrating but they typically will have their day again as long as the fundamental thesis remains intact. We aren't big fans of averaging down and as long as there is some exposure, when they work, they in theory can grow back to a weighting that contributes more meaningfully but we do prefer making the stock 'earn' the higher weighting. Often, if names are underperforming, the 'trimming' is done naturally as they become a smaller part of the portfolio and/or adding to what is working also makes them a smaller part of the portfolio.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in AXON.