How strong is your conviction in a single stock?

I think this might make an interesting topic.

I’m not talking Investment Trusts / funds that are fairly diversified, but a single company here.

Personally, the most I have thrown into a single stock is about 1% of my total investments. To me I’m being fairly safe and risk adverse here. Probably worth adding that I’ve only really felt the need to trim these twice(when they increased to >5% investments).

How about everybody else?

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104 stocks mostly UK and 2 ETF’s (iShares global clean and ECAR)

I guess i created my very own ETF :rofl:

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on occasion I have put as much as 60-70% of my portfolio worth into an individual stock. no horror stories to speak of yet as its supported 2 years of roughly 20% realised returns. very comfortable with short-term risk it seems.

Depends how you look at mine.

100% of my retirement funds that are in “stocks” are in Tesla. If you include my private investments in Crowdcube that goes down to 88%. Then if you include my LISA which is house deposit money, that’s goes down to 65%.

So depending on your definition. I have between 65% and 100% conviction on a single stock.

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Are you happy with 65% in a single asset?

Is this maybe explained by it originally only being like 10% of your funds but after the steep rally it being 65% though?

Doesn’t bother me too much. Risk reward is there for me. Not investing more but not trimming either. Trying to outgrow it but it’s hard lol.

Yeah, it was 20% but kept outgrowing and I never trimmed. Then I’ve tried to stop investing all together as I build an EF and pay off a debt, but then Tesla was held down and put as much as I could until it went back up. Now not investing anymore unless it goes back to $800 again or something.

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Tesla is now 40% of my portofolio. I would like it to bo 50%.

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I’m ok around 20-25% although I probably wouldn’t add to it nearing that point until I’d fleshed out others.

Currently in single stocks my biggest 3 are:

BP 18%
BABA 12%
Amazon 10%

Just out of curiosity, if you are saving for a house and your deposit is less than your Tesla holding, why haven’t you sold some/all your Tesla (at this ATH) to fast track to home ownership? Not sure about your local area but owning vs renting can probably yield a saving/return of 20-30% yearly on mortgage vs rent. Are you confident your Tesla stock can outperform that + any capital gains your house would make?

You’re absolutely right financially. If I moved it over I would also gain 25% instantly from my LISA. But my reasons are financial, it’s just a personal thing. I won’t be buying a house for a good few years yet when I’m in employment. The situation I’m in is best for me right now.

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As long as you maximise the 25% uplift each year if you can!

I’ll never have 4K a year to put in right now, but it’s where I will be investing once I get this student overdraft cleared :roll_eyes:

Whats the interest on your overdraft? At the risk of sounding boring clear any debt you pay significant interest on (not mortgage) before you invest more.

Fair enough I dont know your situation, but I always thing the locked in gains like tax breaks or uplifts are the things to bank, then with extra look at others. Like for me I don’t invest outside an ISA, as the tax wrapper is so darn sexy.

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Interest rate is 0% but it closes in a years time at the earliest, but possibly 2 years. But I’d just like to get it cleared and gone so I don’t have to worry about it.
And yeah, trust me, for now it’s better, but I can’t really explain why.

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I like Dell, but have a question about it. Why does Dell in Trading212 have a dip from 100 to 50 in october 2021 and the same dip isn’t seen in google or anywhere else?

My highest concentration is 27% into a single stock.

Not because I put that much in but it just went through the roof.

Because google and everywhere else loads in an adjusted price history based on corporate actions.

Sell had a stock split 2:1

I agree I would get 212 to reload if possible to do the same.

Thank you for answering. So was Dell at 100 in october followed by a 50 dollar fall?

It split its stock. It didn’t fall 50% in value, the price reduced as for every 1 share you held, you ended up with 2

1x $100 = 2x $50