Share portfolio - managing and minimising churn. Advice.

[johnfm]

I maxed out my Stocks and shares ISA allowance last month - and find myself 9% to the good across the portfolio.

I am in for the long haul - 10+ years, so not looking at prices and panicking or celebrating depending on whether is it in the red or black.

I expect I should just forget about them until next tax year - but is there some value to be had in skimming the 9% now and buying more when the market declines a bit (which it will do when the next Euro scare hits the news).

OR will the transaction costs just nullify any real gains.

[Hyper10]

John, your post says one thing but underlying seems to show you are inclined to be active at the edges of your portfolio. Putting things away for 10 years may or may not work. I think a lot of people quote Warren Buffet and Ben Graham who are/were long term investors but long term does not mean closing your eyes to your stocks Re capital gains, I think you will get a valuation and any gains are offset against tax free allowance.
If you want to be active ask an accountant about the implications and look at various sites iii.co.uk

[New POD]

If you'd been Churning Rolls Royce Shares, and had bought at Last months Bottom, and sold at yesterdays top, you'd have made 15% in a month. If you churned 5 times whilst not quite predicting top and bottom, over the last year you'd have made another 30%, whilst the shares are 10% higher than a year ago. If you are in it for 10 years (I'm in it for 21 years as all mine in done within a SIPP) then any small errors in this strategy, will sort out over time.


(I think I understand what churning means, but If I've missed the point)

[johnfm]

What I mean is basically, should I just leave them alone for 10-15 years or, say, sell a small amount to 'take profit' and then reinvest that profit when prices drop.

I think the answer is the former - as like you recognise, it will mean I over actively watch prices etc and end up (no doubt) selling too early and buying too late.

I think what I will do is just add to the holdings with fresh cash when prices dip.