Rebalancing

1. The core consideration of portfolio rebalancing is not "sell when it rises too much, buy when it falls too much," but rather to think from the perspective of risk control.

2. Bring the portfolio back to your acceptable risk level, while moving money from assets with declining cost-effectiveness to assets with higher cost-effectiveness.

3. Rebalancing itself is a form of risk control. If many people don't rebalance now, their portfolios would basically be semiconductor industry ETFs, which is poor risk control.

4. A more practical approach is: target allocation + trigger threshold + batch execution + investment logic review.

5. Don't adjust positions just because you look at the market every day. This easily leads to a profit ceiling. It's like when you sell call options, why you keep getting squeezed is precisely because your profit-taking room is too narrow.

6. A simple monthly check and a formal quarterly review are fine. Try not to make the unit shorter than monthly. If the deviation is small, don't move; if the deviation is large, then adjust.

7. Like the current semiconductor market, the deviation is large, so you need to act; but if it was before April this year, then you wouldn't need to move.

8. However, rebalancing is not a mechanical action. If a stock rises because its performance, profit margins, orders, and AI monetization capabilities have all improved, then it may not be expensive after the rise, such as NVIDIA, Broadcom, and Amazon.

9. Unless there is an extreme situation where a single stock affects life and death, I believe many people's storage holdings have encountered this situation.

10. When buying during rebalancing, also think from multiple dimensions.

11. Has the investment logic broken down? Is the valuation attractive? How will the company release profits? Does the portfolio already have similar or correlated risks?

12. Focus on companies where the investment logic is intact, the valuation is better, and the future risk-reward ratio is higher.

13. Also, when rebalancing, don't adjust everything at once, and don't cut strong thematic positions too early. Leave some room for yourself.

14. Controllable portfolio risk, reasonable capital allocation, and continuous optimization of the long-term risk-reward ratio—this is the charm of rebalancing.