Most Investors Don’t Have a System
They buy stocks based on news, tips, or gut feeling. They check prices obsessively but never step back to ask: is my overall portfolio working?
I used to be the same way.
Now I have a monthly review process. It takes about two hours, covers everything that matters, and keeps me from making emotional decisions.
Here’s exactly what I do.
Step 1: Portfolio Snapshot (Week 1 of Every Month)
At the start of each month, I record:
- Every position I hold
- Current price and purchase price
- Percentage gain or loss
- Current allocation (what percentage of my portfolio each stock represents)
- Current P/E, EPS growth, and PEG ratio for each holding
This gives me a clean picture of where I stand before I start analyzing anything.
Step 2: Compare to Benchmarks
I measure my portfolio against two benchmarks:
- S&P 500 for my U.S. positions
- KOSPI for my Korean positions
If I’m underperforming both benchmarks over 6+ months, something is wrong. Either my stock picks are bad, or my timing was off, or the macro environment is working against my strategy.
Benchmark comparison keeps me honest. It’s easy to feel good about a 5% gain until you realize the index returned 12%.
Step 3: Review Each Position
For every stock I hold, I ask four questions:
- Has the thesis changed? The reason I bought the stock — is it still valid?
- Are earnings still growing? If EPS growth is slowing or reversing, I need to reconsider.
- Is the valuation still reasonable? A stock I bought at PEG 0.8 might now be at PEG 2.0 after a big rally. That changes things.
- Has anything happened that I didn’t anticipate? Management changes, regulatory issues, competitor moves.
If the answer to question 1 is no — the thesis has broken — I sell. Regardless of whether I’m up or down.
Step 4: Check Stop-Losses
I use trailing stop-losses to protect against big drawdowns.
For standard positions: -20% from peak price triggers a review and likely a sale. For Override Mode positions (higher risk): -15% from peak.
Every month I update where my stop-losses are based on current prices.
Step 5: Screen for New Opportunities
After reviewing what I own, I run my GARP screen to see what’s newly attractive.
Markets move. A stock that was too expensive three months ago might now be at a reasonable PEG after a pullback. A new earnings report might push a company onto my radar for the first time.
I keep a watchlist of 10 to 15 stocks that passed my screen but that I haven’t bought yet — either because I’m at full capacity or because I’m waiting for a better entry price.
Step 6: Macro Check
Before making any changes, I zoom out and ask: what is the macro environment doing?
Key things I monitor:
- VIX (volatility index) — above 20 means elevated risk, above 30 means I reduce exposure
- USD/KRW exchange rate — affects both my Korean holdings and the relative attractiveness of each market
- Interest rates — rising rates hurt high-PEG growth stocks more than low-PEG value stocks
- Oil prices — relevant for energy positions and Korean manufacturing costs
Macro doesn’t drive every decision. But ignoring it entirely is how investors get caught in avoidable drawdowns.
Step 7: Make Decisions and Document Them
After all of the above, I decide:
- What to sell (thesis broken, stop-loss hit, or valuation stretched)
- What to trim (position grown too large relative to portfolio)
- What to add (new screen results, attractive entry point)
- What to hold (nothing has changed)
Every decision gets written down with a reason. Not for anyone else — for me. Writing forces clarity. And six months later, I can look back and see whether my reasoning was sound.
Why I Publish This Monthly
Accountability.
When I know I’m going to publish my portfolio and my reasoning publicly, I make better decisions. I can’t hide from bad calls. I have to explain them.
That’s the whole point of this blog.