How frequently should a stock investment portfolio be reviewed?

Great question! This is a common dilemma for many new investors. There's really no "standard answer" dictating whether it must be three months or a year. It's more of an art, dependent on your investing style and life situation.

Let me break it down for you – see which category you fall into.

Core Principle: Review ≠ Frequent Trading

Before we dive in, it's crucial to clarify one thing: Reviewing your portfolio is about ensuring your "investment thesis" still holds true, not about buying today and selling tomorrow for short-term trades.

Remember what masters like Buffett and Graham often say: frequent trading is the enemy of investing. Your review should be a calm, rational "check-up," not a spur-of-the-moment "surgery."

Different Scenarios: What Kind of Investor Are You?

Think of yourself as the owner of a "garden." Different gardens need different maintenance frequencies.

1. If You're a "Calm" DCA Investor (Mainly holding Index Funds/ETFs)

This is like planting a grove of hardy saplings – you trust they will grow steadily over time, without needing daily watering or weeding.

• Review Frequency: Once a year is sufficient, at most twice a year.
• Review What?
  • Is your Asset Allocation still correct? For example, if you initially set "80% stock funds + 20% bond funds." After a year, a stock market surge might shift it to "90% + 10%." Here, you need "Rebalancing" – sell some of the outperforming assets and buy some of the underperformers to return to your target allocation.
  • Should you increase or decrease your DCA amount? Did you get a raise? Or have new expenses? Adjust your DCA plan based on your cash flow.
  • Have your investment goals changed? If not, stick to the plan.

Summary: For these investors, the focus is on asset allocation, not individual stocks. Don't let short-term market noise disrupt your rhythm.

2. If You're a "Hands-On Selector" (Choosing individual stocks, like Graham)

This is like tending a precise bonsai garden with carefully chosen plants. You need to pay closer attention to each one's specific condition.

• Review Frequency: Quarterly is a suitable pace.
• Why Quarterly? Because publicly traded companies release quarterly earnings reports. This is your best opportunity to receive the company's "check-up" results and your most objective evaluation point.
• Review What?
  • Does your initial investment thesis still hold? Ask yourself, "Why did I buy this company?" Was it for its moat, profitability, or undervaluation? Do these advantages still exist? Has there been a fundamental shift?
  • How are the fundamentals? Look at the latest financial reports – are revenue, profit, cash flow, and debt levels healthy? Did they beat your expectations or disappoint?
  • Is the current price still attractive (cheap)? Graham emphasized the "Margin of Safety." If you bought a stock very cheaply, and it has since surged significantly, perhaps even becoming overvalued or entering bubble territory, you may need to consider selling some to lock in profits.
  • Has its weight in the portfolio become too high? One stock might spike, increasing its share of your portfolio from 10% to 30%. This over-concentrates your risk. Consider selling some to reduce the position.

Summary: The core of reviews for active investors is fundamental validation and risk management. Your decisions should be based on the company's actual performance, not daily stock price fluctuations.

Beyond the Schedule: What "Alarms" Trigger a Review?

Besides the fixed frequencies above, you should also comprehensively review your portfolio when these life events occur:

• Significant Life Changes: Marriage, having a child, changing jobs, inheriting money, or planning to buy a house. These affect your risk tolerance and goals, requiring reassessment.
• Extreme Market Events: Like the market crashes of 2008 or 2020. Crucial note: The purpose of reviewing now is to seek opportunities (are there good companies unfairly sold off you can add to?) or assess risks, not to panic-sell everything!
• Major News About Your Holdings: Announcements like mergers/acquisitions, CEO changes, major scandals, or disruption to core products. These events can invalidate your original investment thesis.

Most Importantly: What Not to Do?

1. Don't check stock prices daily! Opening the app every day to see share prices only causes stress and tempts you to chase performance or panic sell. It’s like planting a radish and pulling it up daily to check its growth – you'll just kill it faster.
2. Don't chase rumors or market noise. Your decisions should stem from your own research and judgment of a company, not because "your neighbor Bob says this stock will rise."
3. Don't trade out of boredom. Sometimes the market is quiet, and you might feel the urge to "do something." Remember, doing nothing can be an essential strategic action in itself.

My Recommendation

For most ordinary investors, I recommend combining both approaches:

• Conduct a comprehensive, formal review annually, evaluating overall asset allocation and long-term goals.
• Each quarter, spend a little time quickly scanning the financial reports and news of the companies you hold, ensuring no unforeseen "black swan" events have occurred.

This approach keeps you engaged with your investments without falling into the trap of overtrading. Remember, truly great investing should feel somewhat "boring." Best wishes for your investment journey!