I’ve only been investing for a month (should have started a lot sooner).
I’ve invested in a few individual companies but also FTSE, S&P 500 etc.
Now I’m thinking, if I want to invest some money each month I now have to decide which one to put it into. Which is a bit of a faff.
It’d make much more sense (unless it wouldn’t) and be much easier to make a pie for all the individual companies and invest into that pie.
I’d probably keep the Vanguard ones out of the pie. Or, maybe I should also create another pie for Vanguard.
Is this a good idea?
If so, what do I need to do?
Should I sell my shares in these companies (any in the red I’ll wait until these pick up before selling), create a pie and throw all of the money into the pie.
Are there any tips for understanding what balance to give each company?
Also, the Wisdom Tree Core pie, is this worthwhile to keep?
firstly well done for starting, everyone will have their own strategy, you need to find what is right for you, this will depend on you r age, risk, and goals amongst other things.
until you start to learn more about investing you would be better off sticking to ETFs and investment trusts, in an ISA if you havent already.
investing is a long term project so find things you are comfortable to hold for at least 5 years.
forget day trading and chasing yields until you understand more about the markets.
any stock you buy today can fall in price tomorrow, if its a solid stock it will rise again, same with ETFs and investment trusts, so dont panic and sell.
one more thing, investing is like life, dont believe anything anybody tells you until you have checked it out yourself, there is a lot of rubbish out there, best do your own research. we all make mistakes starting out, learning is part of your journey,
As mentioned by Abey above, nobody but yourself (or a FCA registered financial advisor) can/should really comment on the specifics of your stock/ETF choices as it does highly depend on individual risk tolerance and financial goal timelines. If you gave your equity choices considerable thought/analysis and have an investment horizon of longer than a few years to account for inevitable dips, then stick with that conviction unless there’s been fundamental changes since picking.
In regard to utilising pies for your individual stocks, and even ETFs, that I’d highly advise and it’s one of the standout features of T212 which makes investing very convenient. You can set target allocations across the equities in the pies, and instantly invest money into your pie accoridng to those targets (or you can adjust the % allocation each time). I have a separate pie for my individual stocks and for my ETFs and it makes both investing and reviewing collective performance a breeze.
1 more quick point, multiple ETF and individual stock investing can result in you having unintended overexposure to specific companies or industries.
ETF Research Center has a great tool for checking fund overlap between ETFs, and you can just generally check the factsheet or website of the ETFs you’re invested in to see how much allocation they have towards your individual stock picks, and you can adjust accordingly.
I wouldn’t bother with individual stocks for now. You can always add some later when you have a better understanding etc and have built up a good sum in an ETF.
All you really need is a global or S&P tracker, both are likely to beat any strategy you could come up with as a new investor.
Those two pies are unnecessarily complicated and large, you’d be much better off investing in one or two or all three the Vanguard ETFs . Possibly picking one of the three as core and prioritising it over the other two when adding fresh money every month.
The Vanguard ETFs are all three very broad and good investment instruments to hold for decades, especially VUAG and VWRP. I’m holding the Invesco version VWRP (FWRG) as core position, adding more shares every month before even considering adding to an existing position or purchasing a new one.
Nothing against holding individual stocks. If you really want to hold some, I would recommend to focus on just a few you understand better and are more bullish about.
