* Most of the investment world worships the bottom line market value of portfolios, and such a focus (without an understanding of too many things to mention here) causes a book full of problems. Within the Working Capital Model method of portfolio management, market value is compared with net deposits to determine if and when a portfolio is at an All Time High Profit Level. * When it is clear that an ATH has been achieved, the portfolio should be looked at carefully to cull the worst performer, at whatever the realized capital loss happens to be. Issues that have fallen below investment grade must be eliminated eventually, and this is the least painful time to do so.
* Be careful not to get carried away with this process. Examine weakness in fundamentals, not in market price, and if you have a choice between more than one loser, pick the one that loses the least capital... it will give you more to work with than the others.
* Major losers (although quite rare) need to be dealt with or your Working Capital Totals will become unrealistic. Again, when the portfolio value is at an ATH, in spite of that holding, it is the right time to bite the bullet.
* Oh yeah, an ATH Profit Level may or may not also be an ATH Market Value... you folla?