Don't Take a Vacation From Portfolio Reviews

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Our dumbest investment was Pan Am Airlines back in early 1991. Shares were priced quite low because there were problems. I didn't know anything about investing at the time and was in law school. After I took my bar exam, my husband and I went on vacation. We had no way to track the stock while we were gone, nor thought that we needed to. On our return, we learned Pan Am had gone into bankruptcy and the stock had tanked. Being bullish by nature, we hung on and ultimately called it a loss on our tax return a few years ago. I learned a great lesson: Review your portfolio before any extended vacations and, if the company is shaky, put in automatic sell orders if it drops below a certain point. Neva Strom, New York

The Fool Responds: It's a good idea to review your portfolio every few months, or at least twice a year, whether you're vacationing or not. Check news reports and quarterly earnings reports for any red flags, such as slowing growth or increasing competition.

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Don't Take a Vacation From Portfolio Reviews

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