00:00The biggest mistake you can make in your life is to worry about taxes.
00:03The fact that you have to worry about taxes is a wonderful thing.
00:06It means you're making money.
00:08But to say, oh, I don't want to sell stock that's now 11% of my portfolio
00:11because I don't want to take the tax yet.
00:13You will pay a brutal price for that.
00:15You will have a massive correction.
00:16You won't have taken any gains.
00:18I never let one asset class ever become more than 20% of my net worth.
00:22No sector more than 20%.
00:24No stock more than 5%.
00:25So if that asset class really has a hard time,
00:28it can't take you out of business.
00:30The discipline is every 90 days,
00:32trim back anything over 5% and put it into something else.
00:35You give up some of the upside,
00:37but when the correction hits,
00:39like Tesla goes down 38%,
00:41you don't take the full hit
00:43because you've taken profit out on the trimming.
Comments