Sean Gates

Perhaps, but again, it just shows you in that quilt chart or stacked ranking asset class

visual that sometimes you have to have other component parts to power your portfolio.

Yeah.

I mean, I think it depends on the construction of your portfolio.

So if you take the buy and hold index investor, if you go line by line, you might only have four investments, right?

You might have VOO, BND.

So there you could go line by line, but you really don't have to worry about comparisons because you're just getting the index rate of return.

If like traditional Motley Fool investors, you're trying to outperform, you're seeking outperformance with skilled stock selection, then to your point, yes, I think a typical three to five year evaluation of those underlying money managers.

And if you have individual stocks, you give leeway to those individual stocks to work for you, right?

So again, this client who had 100% of their portfolio in Apple,

certain years, if Apple underperforms, you could be inclined to rebalance out of Apple, but you give leeway or a leash to Apple to recover and do well.

And so those would be the types of things that you would look for.

You would also take into context the asset location.

So if you have certain positions in a taxable account, you might be more inclined to let those work for you or strategically harvest losers or winners, tax loss harvesting or tax gain harvesting.

And then you might have a different rebalancing structure in a tax deferred account or a tax free account because you can let winners run in those accounts for longer or you can purposely sell big winners over a short period of time because there's no tax implications.

That's another way to do things.

I think my view on this has changed over time.

I am comfortable letting it ride longer.

I have grown an affinity to the foolish philosophy of watering your flowers, not your weeds.

And so from that perspective, things that are doing well tend to do well.