Deploy Your Money: How To Build A Strong Portfolio
Richard Reis

Lets say you can only contribute so much per year. Would it make sense to sell some holdings (at a larger profit, say 20%+ after several years) and then re-buy more shares?

For example, if you can only contribute 5k per year, but selling an equity would yield you 10k (let’s say a 50% return, because it’s been in the portfolio for many many years) would it make sense to sell, and reinvest your original investment plus the new 10k, so as to maximize the size of the portfolio? This has always bugged me because although you % returns may be the same, it’s better to have more money to make a return (if you can make a 10% return for example, investing 10k would yield less money than investing 20k)