Late last year (Aug. 2018), I started building a portfolio of stocks using fundamental analysis and management analysis.
The portfolio is mainly built around high-income, dividend-paying companies which I plan to invest in continuously for the next 20-30 years as long as they're growing and paying dividends.
I also plan to reinvest all of the dividends into the portfolio.
The portfolio has performed well and is currently up by 9.90% just by equity value alone since inception.
This is all well and good, but now my problem is how do I properly allocate the capital between the stocks that I own?
I currently have 10 stocks all from different industries and sectors and I'm not sure which ones I should be buying more, which ones I should be buying less of and which ones I should be looking at sell ASAP.
What I've been doing so far is buying more shares from stocks that are currently in red using my monthly deposits and dividends. It's called "averaging down" if I'm not mistaken.
I'm not so comfortable if this is the right asset allocation strategy for this. At the end of the day, all I want to achieve is minimize risk while maximizing returns for this portfolio because I am probably going to be investing millions if I stay consistent over the years and I want to do it correctly.
I'm also planning to rebalance the portfolio by the end of the year so I want to know how much in percentage I should have in each stock.
Thank you so much for the advice.