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How Buffett Runs His Portfolio


INTROOne Simple LessonHow The Oracle Of Omaha Manages His Portfolio10 Simple Tricks To Manage A PortfolioCONCLUSION



Buying is easy. The hard part comes later.

Have you ever wondered whether you should sell? Or maybe thought about replacing one stock for another?

All investors face these events and most straight up fail. They either blow the opportunity. Or even worse…blow their portfolio.

How do you avoid this?

One Simple Lesson

Don’t do stupid stuff. Simple in theory, right? But when the market comes rambling down and the red numbers emerge, I’m confident

you’ll experience some sort of doubt. Or in extreme cases, fear.

And most investors fall victim to that. Panic selling is a disease that I’m trying to cure. There are only two acceptable reasons for selling:

A. Something fundamentally changed (your thesis no longer holds)

B. You found a better investment (opportunity cost)

And both of them should be based on data. Emotions have no place in investing. The legend knows this.

Let me spare a few words on Warren Buffett.

How The Oracle Of Omaha Manages His Portfolio

I’ve spent years studying his tactics. For the sake of this article, I’ve condensed his approach to four main lessons.

Trust me, if you actually follow these “rules”, you’ll do better than most investors. And you’ll be on a good path to beating the S&P500, too.

Now, without further ado, let’s jump to 10 more simple tricks to manage an existing portfolio.

10 Simple Tricks To Manage A Portfolio

Regular Portfolio Evaluation: Keep a close eye on your portfolio regularly. It often makes sense to sell the underperformers and hang onto the winners. Spread your investments across different industries for stability, ensuring your portfolio matches your long-term plans.

Reinvestment Strategy: When you get dividends, put them back into your investments to grow your wealth. Use the profits to buy more shares or assets, gradually expanding your portfolio and boosting returns.

Goal-Driven Investment: Set clear goals for your investments and stick to them. Adjust only if your objectives change, keeping your financial aspirations in focus.

Market Awareness: Stay up to date with market trends, but don't jump the gun with sudden decisions based on short-term ups and downs. Prioritize the long-term success of your investments over quick market movements.

Risk Management: If you do short-term trades as well, consider using stop-loss orders to protect your holdings from significant drops in value, especially in unpredictable markets.

Periodic Portfolio Rebalancing: Every now and then, adjust your portfolio to match your changing financial goals and the market situation. Make sure your mix of investments lines up with what you want to achieve.

Expense Control: Cut down on expenses by choosing affordable investment options that still offer good returns. Look for ways to maximize your profits while minimizing fees.

Emotional Discipline: Keep your emotions in check when dealing with investments. Don’t let fear or greed guide your decisions. Instead, rely on research and logic.

Resilience Amid Volatility: When the market gets bumpy, stay strong and focused on your long-term objectives. View market fluctuations as opportunities rather than obstacles, and use them to your advantage.

Seek Innovative Insights: Seek fresh and unconventional insights beyond the usual advice. Explore various sources and new viewpoints to make informed and unique investment choices.


That being said, there are so many different investment strategies out there. But as CNBC notes, a large part of Buffett's success entails thinking long-term and building relationships with businesses and its managers. So not every trick applies to every strategy.

But in case you found it useful, I have so much more to tell you. To get my best work, feel free to join the world’s most powerful stock market newsletter for wealth, stability, and happiness.


Information provided on this site is based on my own personal experience, research, and analysis, and it is not to be construed as professional advice. Please conduct your own research before making any investment decisions.  I am not a professional financial advisor, stockbroker, or planner, nor am I a CPA or a CFP. The contents of this site and the resources provided are for informational and entertainment purposes only and do not constitute financial, accounting, or legal advice. The author is not liable for any losses or damages related to actions or failure to act related to the content on this website.

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