nannan66

Kwonyboy Wrote:
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> I don't believe that the low basis stock is
> required to be liquidated. I thought it works by
> utilising the investors other liquid assets to
> purchase other stocks to diversify the position of
> the low basis stock and also reinvest dividends
> into other stocks to gain further diversification.
> Thus the strategy is not really helpful for
> investors who don't have other liquid assets.

As losses are made in the completion portfolio you sell the illiquid holding and diversify it that is one of the keys.