During market crash (or at any other time for that matter) whether to add the same company you hold or add new names depends upon some basic factors.
You need to look at the kind of allocation you have to the existing company in your portfolio. If you feel there is space to add more, if you are convinced about the company (obviously you need to be convinced otherwise it should not be there in the first place) and the kind of price value equation, then it makes sense to add more. Otherwise look to add something new.
Benefit of preferring the company you already hold (assuming you are holding it for some period of time and are tracking it closely) is that you know a lot about the company, business model, promoters/management, variables affecting it etc. So the only equation that needs to be considered is allocation and price. There is one famous quote of Peter Lynch… The best company may be the one you already hold.
| Subscribe To Our Free Newsletter |
