From Random Stocks to Real Strategy: Rethinking Your Investment Approach

I’ve had a lot of conversations lately with people who are managing their own investments, and something keeps coming up. 

Many of them start with good intentions—they pick a few stocks they’re familiar with, maybe even the ones that everyone’s talking about. They build their portfolio around those, and before they know it, they’ve got a handful of random single stocks.

But here’s the thing: That’s not a strategy.

What happens is, over time, their portfolios become overly concentrated in just a few stocks. And when those stocks don’t perform well—or worse, something goes wrong with the company—suddenly, their entire portfolio is at risk. The market’s not on their side, and the volatility is enough to make anyone uneasy.

I get it. 

Investing can feel overwhelming, and we all want to find that “winning stock” that will take us to the next level. But that approach is risky.

What I’ve been doing with many of my clients is taking a step back, revamping their portfolios, and helping them create a strategy that matches the market and minimizes unnecessary risk, while considering their tax situation. It's about diversification, balance, and making sure you’re not putting all your eggs in one basket.

It’s also about being methodical—especially when it comes to taxes. Maybe you don’t need to sell those stocks all at once. 

Gradually transitioning out of those high-risk positions can help you lower your tax burden while giving your portfolio the breathing room it needs to thrive.

If you’re feeling a little uncertain about your own portfolio, or if you’ve just got a collection of random stocks, it might be time for a second look. 

There’s no one-size-fits-all solution, but sometimes a small change in strategy can lead to a big shift in results.

Just some food for thought. If you're looking for a fresh perspective, I’m always here to chat.