add low, trim high

With regard to rebalancing, it’s one of the most beneficial disciplines in that it forces us to do what we know we’re supposed to do — add low, trim high. Notice I adjusted that from the classic “buy low, sell high” adage; which can infer an all-or-nothing strategy. Frankly, investors should never think of investing as either “get in” or “get out.” That is gambling on moments in time; while investing should always be a disciplined process over time.

- Liz Ann Sonders