Below is my target allocation. Think of it as the pie chart of my investments, plus the rules that keep my emotions out of the driver’s seat. Here, I pre-decide answers to three questions for each investment:
What do I own?
How much?
And when do I buy and sell?
Core and Satellite
As you know, my portfolio has two parts.
The core is about half the portfolio and serves as my foundation: international stocks, bonds, gold, and a couple of long-term themes I believe in, like the modernization of the electric grid and hydrogen. I buy these slowly, in increments, on days when the fund is down. And I essentially never sell them.
The satellite is the other half: US stock funds and individual companies. These positions are more sensitive to the ups and downs of the economy, so they follow stricter buy and sell rules tied to the economic environment.
The Allocation
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