TALKING FINANCE with Michelle Higgerson of Baiocchi Griffin Private Wealth SEE THE YARD FOR THE WEEDS When the calendar page flipped over from August to September we officially came into the new season of Spring. And with it came warmer days (albeit only temporarily after the chilly weather this week), gardens blossoming, and a symphony of lawn mowers starting up every Sunday afternoon. One thing also coming to life, with gusto, is the weeds. Clover in the lawn, dandelions all throughout the garden beds, every time you turn around the amount present in your garden seems to double. There are many ways you can deal with the unwelcome visitors in your garden. You can pull them out, spray them with a good hit of your favourite herbicide (or a mixed combination of boiling water, vinegar and salt according to Gardening Australia), or by reducing the available space in the garden by simply planting more plants. If you prefer the first two options, before heading out with your trowel and fork, make sure you have a thorough understanding of what garden growths are in fact weeds, and those which aren't. You want to be sure you are removing the oxalis and onion weed from your gardens and leaving the daisies and the begonias intact. If you decide to do a tidy-up of your portfolio, it is also important to understand what you are doing. Like weeds, if there are any dud performers in your portfolio, ideally you want to remove them before they have an opportunity to become a bigger problem. However, this is far easier said than done and requires some serious long-term thought when making the decision to remove or not. All companies will experience a patch of disappointing performance from time to time some more than others, but overall, this is a commonality between all stocks. The real challenge is knowing the difference between temporary underperformance and systemic problems that will inhibit the company going forward. For temporary underperformance, caused by something such as an economic downturn or the retirement of a long-standing company head, you should be more patient but ultimately expect a recovery. Systemic problems on the other hand, such as increasing debt levels, reducing revenues or frequent changes in upper management can all be seen as red flags and reason to remove the holding from your portfolio immediately. Like weeds that flower, appearances can be deceiving, and you want to be sure you are only removing the right things from your portfolio and not taking out anything that has an ability to blossom into something far bigger and greater. While Bunnings might refund you the cost of a dead plant, no such offer exists for bad investment decisions. BAIOCCHI GRIFFIN PRIVATE WEALTH Level 1, 462-464 Peel St, Tamworth NSW 2340 6766 9000 AFSL No 424658 This article is general in nature and does not take your individual situation into account. You are advised not to act on anything contained herein. or discussed as a consequence of the contents of this document, without receiving financial advice from a suitably qualified person such as a financial planner, lawyer or accountant. Follow us on Twitter @Baiocchi Griffin Find us on Facebook facebook.com/BaiocchiGriffinPrivate Wealth www.bgprivatewealth.com.au AW7403936 TALKING FINANCE with Michelle Higgerson of Baiocchi Griffin Private Wealth SEE THE YARD FOR THE WEEDS When the calendar page flipped over from August to September we officially came into the new season of Spring . And with it came warmer days ( albeit only temporarily after the chilly weather this week ) , gardens blossoming , and a symphony of lawn mowers starting up every Sunday afternoon . One thing also coming to life , with gusto , is the weeds . Clover in the lawn , dandelions all throughout the garden beds , every time you turn around the amount present in your garden seems to double . There are many ways you can deal with the unwelcome visitors in your garden . You can pull them out , spray them with a good hit of your favourite herbicide ( or a mixed combination of boiling water , vinegar and salt according to Gardening Australia ) , or by reducing the available space in the garden by simply planting more plants . If you prefer the first two options , before heading out with your trowel and fork , make sure you have a thorough understanding of what garden growths are in fact weeds , and those which aren't . You want to be sure you are removing the oxalis and onion weed from your gardens and leaving the daisies and the begonias intact . If you decide to do a tidy - up of your portfolio , it is also important to understand what you are doing . Like weeds , if there are any dud performers in your portfolio , ideally you want to remove them before they have an opportunity to become a bigger problem . However , this is far easier said than done and requires some serious long - term thought when making the decision to remove or not . All companies will experience a patch of disappointing performance from time to time some more than others , but overall , this is a commonality between all stocks . The real challenge is knowing the difference between temporary underperformance and systemic problems that will inhibit the company going forward . For temporary underperformance , caused by something such as an economic downturn or the retirement of a long - standing company head , you should be more patient but ultimately expect a recovery . Systemic problems on the other hand , such as increasing debt levels , reducing revenues or frequent changes in upper management can all be seen as red flags and reason to remove the holding from your portfolio immediately . Like weeds that flower , appearances can be deceiving , and you want to be sure you are only removing the right things from your portfolio and not taking out anything that has an ability to blossom into something far bigger and greater . While Bunnings might refund you the cost of a dead plant , no such offer exists for bad investment decisions . BAIOCCHI GRIFFIN PRIVATE WEALTH Level 1 , 462-464 Peel St , Tamworth NSW 2340 6766 9000 AFSL No 424658 This article is general in nature and does not take your individual situation into account . You are advised not to act on anything contained herein . or discussed as a consequence of the contents of this document , without receiving financial advice from a suitably qualified person such as a financial planner , lawyer or accountant . Follow us on Twitter @Baiocchi Griffin Find us on Facebook facebook.com/BaiocchiGriffinPrivate Wealth www.bgprivatewealth.com.au AW7403936