Thread by @retaox

A neat little trick that I've been following lately to save my 'Coffee Can Portfolio' from my myself & my impatience:

I've two brokerages; one for my 'Working Capital Portfolio' and other for my 'Coffee Can Portfolio'. Both are long term oriented, but serve different purposes.

Working Capital Portfolio :

The is where I initiate a starter position in a stock. I initiate starter positions for 2 reasons :
1) Gain further conviction.
2) Wait for a right price on a company with fantastic economics.

I log into this account about once a week.

Coffee Can Portfolio :

Once I've reached the maximum allocation for a particular investment in my 'Working Capital' account, I initiate a transfer of the security to the 'Coffee Can' account.

I log into this account, like never. This brokerage contains my retirement funds too.

Why do I do this?
1) Stops me from short-term resulting. In the short term, market moves the price of the security up and down for various reasons, not related your investment thesis.

2) As a long term investor, I've trusted my money with the company's management. After I've reached my maximum allocation threshold, there's no reason for me watch it any further. Best leave it alone in a place where I can't see it any more.

Cons :
* It's a pain the rear to calculate to calculate yearly and long term performance across two brokerages.

Note :
1) Check with both brokerages, if there are any fee involved with these transfers. I know Vanguard and Fidelity don't charge any fee.
2) It takes 2 minutes to complete a online transfer request in most brokerages. The transfers complete within a week.

* Certain brokerages have nifty features to hide certain accounts. I've tried those to implement this system; doesn't quite protect the 'Coffee Can Portfolio' from my self.