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 https://tinyurl.com/y3zkc5z4

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.