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  5. MISC: 5i has been a terrific resource for many things, including recommendations for great stocks that I would never have owned otherwise. [Miscellaneous]
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Investment Q&A

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Q: 5i has been a terrific resource for many things, including recommendations for great stocks that I would never have owned otherwise.. But... I now have too many 'favourites' and need to reduce the number of equities in each of these 3 sectors : Financial, Industrial and Tech. Your suggestions as to a rational approach to the decision making process would be appreciated . I assume there will be different factors for different sectors as well as adjustments to be made depending on whether the preference is for growth, income or a balanced approach. I have reached decision making paralysis - HELP !!
Asked by Alexandra on January 15, 2026
5i Research Answer:

One high level 'trick' to help guide an investor on which names to remove can be to act as though you are going to purchase a stock as a brand new position. Would you buy it 'today'? If the answer is no, it is probably a good sign that it is a sell candidate. Also, if positions are small in a portfolio it often means the investor does not have a whole lot of conviction on the name and it also won't be contributing much to the portfolio, making it an easy name to remove as well.

Outside of this, we would maybe look for overlap in exposures or factors and look to remove names that help to reduce an overweighting to any single type of exposure.

We might have less considerations at the sector level specifically but we would maybe just look for companies that are growing and have quality balance sheets while the valuation has not gotten too far ahead of itself.