How to manage a portfolio of growth stocks

Not every growth stock you buy will pan out. As such, it’s best to start with small positions in multiple growth stocks. If a business’s financial performance lines up with your investment thesis, you might increase your position in that stock, as you should now have more confidence in its future growth. However, if you start to see evidence that your thesis was wrong, you should start trimming your position, or possibly exit it altogether.

As mentioned, growth trends can last a very long time, so you should avoid selling a stock too early. However, since growth stocks are more volatile than value stocks, it may be smart to limit your biggest positions to a certain percentage of your portfolio….