Forum Topics General portfolio ratio
Bustus
2 weeks ago

There are a lot of views on this. I don't think there is any right or wrong answer.  

I try to keep all holdings at less than 15% of the total portfolio.

I like a mix of both  growth and value opportunities.  It's hard to classify sometimes and depends on the company.

I also like to add some ETF's to the portfolio to give  both international and some targeted exposure.  Eg the Nasdaq 100 (NDQ)

I like to initially buy a small holding say with a value of 1% of the portfolio. As my conviction increases I buy  more. 

 

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Patience
3 weeks ago

https://www.gmo.com/americas/research-library/1q-2021-gmo-quarterly-letter/ Intresting article on speculative growth and the market as a whole Hi Lamits Was reading this tonight and though not specifically related to your question it is intresting to read over growth vs value ( dividends). Although not on your specific of allocation it holds some weight to consider some of the veiws around things. This company created one of the first index funds back in the 1970s and has called out many bubbles over the last fifty years.

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Patience
3 weeks ago

Why Jeremy Grantham is wrong about a share market bubble (fool.com.au)

Another perspective on gmo from motleyfool contributor Tony Yoo today

 

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lamits
3 weeks ago

Hi strawman crewswhat is the good portfolio ratio.100% divident stock?

100% growth stock?

50/50% divident and growth?

for medium or/and long term ? 

sorry if not make sense

Thanks guys

 

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Patience
3 weeks ago

Hi Lamits 

If your looking at portfolio construction Id suggest reading up on a concentrated and diversified portfolio construction.. 

As far as how many dividend to growth stocks to allocate too this comes down to conviction of the underlying businesses and also needs to consider your investment objectives and personal finacial needs. It would be foolish past time to invest into penny stocks with your super. <aybe to sit down and write out your objectives identify your risk profile and where the money is coming from to invest and then construct a portfolio around it. 

If you are thinking of risk then Id suggest reading books on the psychology of investing.

Hope this helps have a great day. 

Also I would suggest that watching the swedish investor on youtube to find a range of books  that may prove benefical

Hope this helps and that your ratio between dividends and growth and allocation is helped. 

Have a great day 

 

 

 

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Mark1
3 weeks ago

I'm 100% growth, investing for the medium 3 to 5 years hoping to hold forever. 

 

Dividend stocks, to me, mean a mature business that has finished changing the world and now reaping the rewards. Their growth is linier. Analysts will have fully factored in the next few years and the overall return will be 4% to 6% to keep old people happy.

 

I am after dynamic businesses who are on the way up and have a good chance of exponential growth. They're exciting in themselves, exciting to society and exciting to hold. They are dismissed and diminished by analysts. Rarely mentioned by the AFR. Their prices volitile. 

 

"Diversification" to me means having good companies with a high chance of success and returns tempered by boring companies that will only go up when the rest of the market dumps.

If I need 'high conviction' companies then diversification can only mean into low conviction areas... Maybe buy some Infrastructure stocks in case roads ever become exciting?

 

I am certainly still in the early learning phase, so take my post as my thoughts, not Buffet advice.

 

:)

 

Mark

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