Opinions on my portfolio

Hello, I am 36 and I have 10k chf to invest.

I made this at the moment and I am curious if this is ok or not. I tried diversity (local / international, technology, …)

I want to invest 1k CHF by month but I don’t know if I add to each 1k or if I add only for aapl and vwrl for example.

Auctions

  • Sren.sw - 1k
  • Abnb - 1k
  • Dis - 1k
  • AAPL - 1k
  • Msft - 1k
  • Nvda - 1k
  • TSLA - 1k

ETF

  • Ecar- 1k
  • Inrg- 1k
  • Smmcha - 1k
  • Vwrl - 1k
  • Chspi- 1k

Let’s start with that (though it’s not as if we didn’t have a specific thread for them):

What’s your reason to invest in Tesla?
What’s your expectations for their future stock price, revenue and earnings?

I take TSLA when the stock was “low” and I take my benefits to invest on other stocks.

I think TSLA can grow up (building more and more cars with Berlin, 1st on electrical cars, …).

The question is more “Is it ok to fragment like this or I must buy only 3-5 stocks max” ?

What @San_Francisco is hinting at is: what is your business case for your single stock holding, why will they beat the market (with actual numbers, remember you’re trying to be smarter than people who do that job full time).

Second given the low amounts, that’s a lot of transaction. Personally I’d just put 10k in vwrl and be done with it (it’s a fairly small sum). Depending on your income (and your marginal tax rate) consider putting it in a low cost 3a instead.

4 Likes

Sure, they can.
And will.
But what about their and valuation?
Is the “price” of the investment worth it?

Do you think they will grow as big as Toyota, Volkswagen, Daimler, General Motors, BMW, Honda, Volvo and Hyundai - combined? Or will they be more profitable? (As I said, for your answers to these questions we do have specific thread)

Or are you just buying into the hype?
(Not that there’s anything wrong with that - if you know what you’re doing and why).

But back to your original question:

Imagine you had a 100’000 CHF.
Or a 1’000’000. One million Swiss Francs.

Would you still allocate your investments proportionately?
100’000 in VWRL, 100’000 in Apple, 100’000 in Tesla etc.?

If not, what would you change or do otherwise?

1 Like

What I would do with 10K? Just buy VWRL.

3 Likes

By the way, I think this is a common pitfall. Unless you hold 50 random stocks, single stock holdings are not what is usually considered diversified (at least compared to ETFs that track an entire market).

1 Like

First, thank you all for your answers, it’s very interesting.

TSLA :slightly_smiling_face:
Yes, I think they will grow as big as other manufacturers but combined, not sure for long term. I think, in 5-10 years, concurrence will be there with good products.
So, i’ve invested because I think they can be more profitable but I will sell them later or sooner if the hype is going down. It was more a low-term investment.

Imagine if I have 1’000’000 (take big directly ;-)) :
I would invest in max 5 stocks. Apple (love products, think they can grow lot more etc, dividend is not bad etc.). VWRL and 3 more but dont’know now which ones.

Just buy VWRL :
I’ve read this but, I must admit, I prefere to take a little bit more risk to have better results. I explain :
As I am checking often the money on my trading account, I prefer taking risk with, for example, Apple for a mid-long terme instead of vwrl but, as I said previously,vwrl is on my short list.

That’s just gut feeling not an investment strategy. You would need to explain the actual long term EPS (with cashflow, etc.).

Sounds like you want to have fun gambling, not investing (which is fine, just need to make sure that’s what you want).

1 Like

More risk = higher return is only true, if you take on systematic risk. If you take on uncompensated, idiosyncratic risk, you just increase the dispersion of outcomes.

2 Likes

What’s the point of asking an opinion if you’re selecting stock based on your feelings and no metrics.

Select VT/VWRL or maybe a technology ETF which hold APPL, MSTF, TSLA like QQQ if you want to take risk

I understand and, in fact, need to think more investing than gambling, you’re right.

VT is not available on Degiro if I remember correctly.

Must read / check videos a lot more to make this good and not based on my feeling…

Partly. That was to reasoning behind my question above (on what to do with more money):

These 5 are what I would call consider candidates for a serious „investment“ and „portfolio“.
The rest is just „fun money“ or speculation.

Yes, your „serious“ portfolio could also consist of just a few select stocks.
Nothing wrong with that.
Just don‘t select and buy them based on gut feeling alone.
(I also would suggest to be cautious against your gut feeling)

Totally agree with the above statement, you can “love the brand” and at the same time “hate the stock”. Apple, Airbnb, Disney, Tesla etc. all have a great products that millions of people love and buy. We can also assume that their immediate future looks alright. However, this is something other investors (the market) also know and that’s why it’s already priced into the stock. Alas, it’s not very easy to beat the market.

Also consider that in the end the most diversified investment you can make is probably just buying only 10k of VWRL.
It might sound counter-intuitive but adding a separate investment in additional single stocks (especially large caps like AAPL for example) will only reduce the diversification of your portfolio.

Haha :laughing:

The funny thing is: I was in a hurry and originally meant to write this the other way round: “be cautious of going against your gut feeling

But I agree, and it goes both ways: One might go with his gut feeling - but should buy at prices that can reasonably be justified.

1 Like

I agree with others here about investing the lot in a cheap diversified fund. If you want to diversify yourself, I suggest starting with replicating stock indexes. But because you pay a brokerage fee for each position, there’s only a cost advantage over paying an index ETF if you invest a fair amount of capital in each stock (min. 5k, ideally 10k per stock).

By reading and partipating to this forum, you confirm you have read and agree with the disclaimer presented on http://www.mustachianpost.com/
En lisant et participant à ce forum, vous confirmez avoir lu et être d'accord avec l'avis de dégagement de responsabilité présenté sur http://www.mustachianpost.com/fr/