I would say your portfolio is very growth and speculation oriented because:
45% in tech, 20% green energy (green energy is mostly utilities, tech and industrials).
If your goal is lowering risk by spreading into different sectors you should spread into sectors with lower correlation. Tech, semis (kind of the same sector but okay) and green energy have a high correlation so more diversification benefits would be gained by diversifying into other sectors.
Financials, healthcare, materials and even regular energy (but seeing you have clean energy you might have moral objections which is completely fine), would improve your sector and factor diversification (the latter one meaning that you also have some value-oriented stocks which are more prevalent in financials and materials than in tech).
I agree with a lot of above points. Especially as a new investor you really dont want to take big losses right out the gate as may impact your overall view.
I would say generally maybe have a look at and research:
20-30% ETFs (some of this can be clean energy etf if you wish, but also S&P tracker like VUSA and maybe a Chinese one like FCSS or BGCT)
Then various amounts in:
Tech - Focus on some companies you like but mostly are solid like Microsoft, Amazon, Apple
Consumer - Again have some solid (Unilever, Coca Cola) and some growth (Starbucks)
Financial - Including Payments (Paypal, Visa, Amex, Stone, Square) and banks (lots here depending on country/style you want)
Healthcare - JnJ (stable growth and dividend growth), Merck, GSK (for a stable dividend)
Energy - Check out NEE which is renewables but stable and a solid dividend too. Mix with current ones maybe like Shell or BP (small amount)
Dont know much about REITS or semiconductors but I own NVIDIA in my tech pie.
thank you so much guys . Rergarding ETFs. I was kind of thinking of “cutting” the middleman with not choosing ETFs. As if I understand correct those are managed from professionals. And those want their fair cut right? Makes that sense ?
Yes depending on the ETF fee varies, but you dont see that it just less your returns (by a small amount). Main reason I said that is just to give stability to your portfolio while you start. Equally if not ETFS then just make sure you have a good portion 70-80%+ in big tried and tested companies like:
etc that way you will be tad more stable rather than putting all in uncertain growth stocks.
@Hbomb and @damadden88 Regarding semiconductors you may consider STM that I bought a few weeks ago, headquartered in Switzerland, but also in the US market. Is doing very well and is still relatively cheap: $41. I suppose the price will continue to go up because the voice is starting to spread and semiconductors are doing well.
The price per share is irrelevant.
A thing that does matter is the market capitalisation and how it compares with other metrics (profit, revenue, EBITDA, debt, etc). The market capitalisation is the share price multiplied by the number of shares. It is the price of the company, assuming someone wanted to buy all the shares.
@EquityInvestor All matters… nothing is irrelevant in the market. Besides, ‘irrelevant’ is a subjective word, maybe something irrelevant for you is not irrelevant for other person’s strategy. Said that (with the necessary modesty), the information you gave is relevant, at least for me.
On the other hand, P/E is not SO important nowadays. For example, you can do the same research you made for STM in marketwatch for TTD.
More or less is also my split. Good decision @damadden88. I am investing in Index funds with my bank, investme.com and Indexa Capital (Spain) and I am satisfied. Right now this is a very volatile market and my money is relatively saved with them (more or less only 50% in equity and managed by professionals, with a decent return). You should find something similar in your country with low or 0 commissions (at least for the first year depending on the amount you invest).
Yes VUSA is a good start, BG too if you go for one with international exposure. I am about to open a position in ESPO ETF which is about gaming industry so I see your interested in that so maybe worth a look.