When Free is not really Free - A bob each way
Funnily enough I sort of get the whole free carry thing and I don't at the same time. Long term investors getting well advanced in years often have held shares long term and for stocks like Ryman Ebos and others that have shown significant capital growth over the long run...in a well balanced portfolio its clear that portfolio positions would have to be trimmed down from time to time to keep them in the right proportion.
I get the whole psychological comfort zone that a free carry brings. If this arises out of a natural well disciplined portfolio management approach, (i.e. not letting certain high growth shares get out of kilter in terms of their portfolio allocation) then I can see that one would feel quite content for a so called free carry.
I guess tied in inextricably with this whole thing though is this important question, is it appropriate to regularly highlight to other people the fact that your remaining shares are free ? How does this make the young and new investors on here fell ?...some food for thought offered without bias, angst or malice...
In regard to SUM, I think the long term is extremely favourable so regardless of what investment approach one takes gains will be there but the short term I am not so sure which is why I'm having a bob each way.
I guess some people like to carry free shares and others like to hedge their bets. Whatever makes you happy and helps you sleep well at night I reckon.