With the $billions in his portfolio it is prudent to redirect cash from your largest position when it has grown substantially, and growth is slowing, to allocate to areas of either greater return, or safety.
“With the $billions in his portfolio it is prudent to redirect cash from your largest position when it has grown substantially, and growth is slowing, to allocate to areas of either greater return, or safety.”
Yep - they call that “rebalancing”.
It’s an attempt to beat the market (buy and hold).
Its drawback is that you have to beat the market by more than the tax rate - very, very tough to do over the long run - , since you’re paying capital gains taxes on the winners you sold. Might work better in an IRA. Still questionable that it’s better than buy and hold.