RE: Free Ride28 Apr 2026 16:48
Yep - going to a free ride isn't strictly by itself a risk management and harvesting strategy as if you've ten bagged for instance then you are still carrying 90% of a large holding and position in the stock. And of course if this position also makes up a large bulk of your portfolio/s - then you are still considerably exposed for good or bad.
Considering your risk management is important, especially in a sector where your shares can easily drop by a third or half in a matter of months in the wrong circumstances. Of course - the opposite is generally true for the positive scenario, so it's a crazy sector to play in...
Personally I sometimes like to take a free ride so I can then re-use the original capital in other investments. What I then intend to do is when I further trim or harvest gains from what was originally a high risk position is find a safer vehicle for those funds, on or off markets. As I intend to switch to more boring passive investing moving forward now I'm in the over 50 club and have everything in place for my future plans, I'm intending to play this bull run for PM's while it runs and then reposition in the main for boring lower risk for the most part.
That might still mean a large stake in GGP of course, dependent on how it looks for the sector and even in a down cycle then perhaps as a hedging strategy by retaining exposure. Risk management is very individual, based on age, goals, financial means overall and approach to wealth management - but it does need to be considered IMO. Better to recognise there is no one correct answer though, more a case of different options that will suit each of us better.
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