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DEEP RESEARCH · ASSET ALLOCATION/PORTFOLIO

Thoughts After Q1 2025 Earnings

A portfolio memo after a quarter with both new-high names and laggards, focused on avoiding excessive diversification

Written: 2025-05-15 · Asset allocation and trading discipline · Original Naver Blog post

You are responsible for your own investment decisions. This material is research and is not a recommendation to buy or sell.

0. Bottom line first

When I study companies, I end up finding too many companies I want to own, and trading becomes frequent. This quarter reminded me that if I bought something cheaply, I need to practice holding it longer unless a major problem appears, even when a new company looks better.

1. Portfolio State This Quarter

Official fact: In the source post, Palantir, Incar Financial Service, Easy Bio, and Mirae Asset Securities were listed as portfolio companies reaching new highs this quarter. InBody and Philoptics were described as still struggling near the bottom.

New highs

Palantir, Incar Financial Service, Easy Bio, Mirae Asset Securities

Portfolio companies that moved strongly this quarter and were reaching new highs.

Laggards

InBody, Philoptics

Portfolio companies that still felt stuck near the bottom.

Behavior

Reduce trading frequency

The more company research I do, the more names I want to buy, which creates the problem of trading too often.

2. The Rule I Am Practicing

Interpretation: Studying companies keeps increasing the number of companies I want to invest in. So if I bought cheaply, I am practicing holding longer unless a major problem appears, even when another company looks more attractive.

Portfolio Behavior RuleThe more opportunities appear, the more holding discipline and concentration matter
More researchMore attractive companies
TemptationFrequent trades and switching
RuleHold cheap purchases longer
ControlAvoid over-diversification
Life is long, and choosing not to invest in every visible opportunity is also part of allocation.

3. Areas I Want But Am Holding Back On

I wanted to invest in renewables, but I am being patient. A large opportunity seems visible, but chasing every opportunity could make the portfolio overly diversified.

For nuclear power, I already have exposure through ETFs in my defined-contribution retirement account. So instead of trying to grab every additional opportunity in a separate account, I am thinking about the balance between existing exposure and new opportunities.

4. Asset Allocation Memo

  • Even with stocks at new highs, the overall portfolio is not always comfortable.
  • When laggards are mixed in, I need to separate a broken thesis from simple price weakness.
  • Even if a new company looks attractive, I should not too easily abandon a company I bought cheaply.
  • Not investing in a visible opportunity is training to avoid excessive diversification.

Sources

Naver original