What does it take to build a great portfolio? This episode we debunk the myth that you need to be an expert to build a great portfolio. The truth is, it's simple, as long as you're dedicated, do your own research and are prepared to have some fun. We discuss the simple building blocks that we think are fundamental to building a portfolio and that are achievable for the beginner. In this episode you will learn:
• What is an investing portfolio • The 4 pillars for building a portfolio - goals, risk, diversify and allocate • Importance of having a strategy or at least end goal • How to set personal investing goals • Thinking about risk • How to identify your risk profile • Diversifying assets: 5% rule & Perfect portfolio • Importance of asset allocation: • Do you keep some cash available to put into the market when it drops? • How much of your portfolio should be made up of individual stocks vs. ETFs or LICs. • For a beginner would a heavier focus on the latter be appropriate? • Diversification and rebalancing your portfolio.
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To have a diversified stock portfolio, how much of your overall portfolio should be in any single stock position?