Once you have a handful of 1–3 year ideas, management matters as much as selection.

13.1 Position Sizing for Mid-Term Ideas

Mid-term positions should be meaningful but not portfolio-killing if wrong. For example:

• Each mid-term stock/ETF might be 2–5% of your total portfolio.
• The entire mid-term bucket might be 20–30% of your investing capital (as outlined in the three-bucket model).

This way:

• A single failed thesis hurts but doesn’t derail your long-term plan.
• A handful of successful theses can still move the needle in a positive way.

13.2 Review Rhythm: Quarterly and Annually

Mid-term investing is closely tied to earnings and business progress. A good rhythm:

• Quarterly (every 3 months)
  • Check earnings releases and conference call summaries.
  • Ask: Is revenue, profit, and guidance roughly in line with the thesis?
  • Update your notes in your journal for each position.
• Annually
  • Evaluate whether each position still deserves a place in the mid-term bucket.
  • Consider rolling matured winners into your long-term core or trimming risk if the thesis has mostly played out.

This keeps you engaged enough to catch major changes without turning you into a day trader.

13.3 When to Admit You’re Wrong

Even with a good process, some theses won’t work. Reasons to exit:

• The fundamental story breaks (e.g., repeated earnings misses, dividend cut, regulatory hit).
• Your original reason for buying is clearly invalidated.
• The stock violates a pre-set risk limit (price down beyond a level you defined before entering).

The key is to decide your exit conditions when you buy, not in the heat of the moment. This reduces emotional decision-making.

13.4 Letting Winners Run (Without Becoming Reckless)