Beginner investment strategy

đź“Š Investing
1

Hi All

New to all this, I am thinking about my investment strategy, and what I have come up with is below.

I would appreciate thoughts - before I begin and make a mistake!

My mantra essentially is “invest in companies that have showed continued success” - and I appreciate that “past performance does not guarantee future performance”.

Supporting my mantra is that these are companies have operated for decades, and built up a dominance in their industries, and i foresee that they will continue to be market leaders in their industry.

So, I plan to create a pie to invest in, companies such as BAE Systems, Walmart, Visa, Mastercard, Caterpillar… which apart from blips, have consistently risen…

Apart from the obvious “past performance does not guarantee future performance”, is this strategy flawed?

Thanks!

2

Valuation matters. They might be great companies and continue to be so, but if their returns fall short of the marker thus forward why bother?

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3

Thanks for that view. So, current P/E ratio always the best marker rather than past performance?

4

Invest 95% plus into the S&P500 or an all world index fund, and use your spare change for your own stock picks to begin with would be my own advice.

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Thanks - Good advice.

6

Not necessarily PE but some kind of valuation framework to suit the company you’re investing in.

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7

A follow up here, if i invest in S&P500, VUAG as an example, is there a charge? Thanks

8

The fund manager takes a fee regularly from the fund itself, not from your account, so you won’t ever see anything going out.

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9

Thanks - and where can i see the fund charges that would be taken from my account?

10

Justetf.com is a good website to screen ETFs, review fees and past performance.

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11

You won’t see them, as per my post. They’re taken from the other side.

If you want to see charge % just type in the funds ticker and KIID on Google and you’ll get a little fact sheet. On 212 scroll down to the bottom of the listing and go to instrument details. Will be in there.

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12

Thanks both! Appreciated