10k for isa what would you do

If you had 10k to put into an isa now.

Assuming no prior portfolio, what would your ideas be?

First person to say apple gets to be the next William tell :joy:

My current ISA strategy is a 50/50 split into growth (mainly tech) and dividend stocks. So that’s how I would continue to allocate 10k.

My growth pie has 10 stocks - including Apple - 10% weight on each.

For dividend stocks my prioirity has been good value first, high yield second. They must also have shown a past 5yr growth or potential for some growth.

Interesting, similar strategy.
Which indicators are more important for you to define good value?

It varies depending on the company quite a lot. But I like a nice low P/E, good profitability margins and RoE. In the current climate, I’m also looking to the mid-term future/for a return to “normal”. Companies that have solid financials but are also heavily discounted based on pre-COVID levels.

Hasn’t value failed to perform for the last 10/15 years though?

Relative to tech/growth stocks? Yeah, maybe.

They do tend to offer a counterbalance to the more risky growth stocks.

I mean at all, I remeber reading something from the Nobel laureates who came up with the theories behind value investing saying it had effectively disappeared over the last 10/15 years.

Similar to the EM market stratagey.

Value has outperformed growth statistically since records began. iMO it will come back big time when this tech bubble pops and it will pop.

But you arent going to live as long as the records.

If a 20 year horizon is likely the bulk of most peoples portfolios

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You can already see it happening, rumours of BT acquisition, why? Because clear value…

BT is valued less than Zoom :joy::joy::joy:

I know what approach I’m taking, plus everything is cyclical people have always said value investing has died, absolute rubbish. How can value die…

There is an interesting ETN from Barclays (CAPE) that continuously invests in the cheapest valuation S&P sector spider. here is a comparison of CAPE vs VUSA CAPE Interactive Stock Chart | Barclays ETN+ Shiller Capet ETN Stock - Yahoo Finance

on the original question, if I were 30 y.o and 10k is my first investment today. I’d go 1/5 MELI/STNE/AMD/NVDA/SQ and would not even blink

Yeah and theres rumours itvs going to get bought every other year too if you bought in each time then you’d have lost a lot

You can’t compare ITV and BT.

One is being overtaken by new streaming platforms and gradually will become obsolete. The other is at Britain’s core infrastructure.

SQ/NVDA/AMD doing pretty well for me and I bought into them all pretty late.

For an ISA I’d probably go with some dividend with room to grow (e.g. V, AAPL, MSFT, NVDA) and some pure growth (e.g. AMZN, SQ, AMD) and maybe throw in some decent ETFs (e.g. VUSA/VWRL, EQQQ, and depending on views for the future maybe ESPO or some green energy or automation ETF).

These are just ideas of what I’d do and not suggestions for what anyone else should do.

Well they are comparable when your “value” stock is only valuable when rumour start to fly theres only about 3 days in the last 8 years you could have called today’s prices an improvement

Not really…if you look at price history there is a clear pattern. Each to their own.

if you were 30 y.o. and 10k in your investment TODAY. Wouldn’t you wait for the prices of these stocks to go down a bit ?

This felt like a bit of a dejavu so I searched for it.
You asked a similar question before and I had a similar answer: I am terrible at timing the market :sweat_smile:

edit: I mean, I don’t want claim that this is the only way I am 100% sure there are people out there a lot better than myself, and catch these best moments. But historically when I look at my positions, I can say by my positions I failed to catch these 9 out of 10 times, and I’d consider that 1 out 10 is just by luck.

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Fair enough. It just seems that this particular year is kind of anomaly when it comes to the price hike of tech companies. So I was wondering if I should wait a bit before entering on these stocks. But then again, I would probably drip-feed some amount every month, so I guess the entry should not matter to me that much.

Do you think this tech sector is a bubble at the moment ?