Some new opportunity always looks compelling. Some investors always have many more interesting stocks that they would buy if they had the money. But it is best to resist the temptation to dump every underperforming stock in favour of the hot stock of the week or month. After a year of such churning only your broker will be richer. Take the time to perform due diligence on every new exciting business that crosses your radar screen and give your current holding a fair chance to meet the original performance goals you set.
Low turnover is an investor's best friend.
Patience and rational thinking will help. Here's how to go about setting up such a fund. SPH AsiaOne Ltd. All rights reserved.