Sunday, October 27, 2019

Tired From Looking For New Companies To Invest? Read This (Very) Short Post.

After investing for a few years, and if you are an active investor, you will have a number of different securities and counters in your investment portfolio. While continually doing research and prospecting for potential companies is one way, it could be exhausting for one if there are other commitments and/or if you still are holding a very busy day job.

If your mind is willing but your physical body is not, then maybe you can consider two other alternatives to manage your portfolio: looking at your current holdings and going the ETF way.

Looking At Your Current Holdings

It is still worth a look at what you have in your portfolio, otherwise you would have sold them off long ago (or maybe still get stuck with them). Some of your counters may still have growth potential, or may have a healthy, increasing dividend yield (i.e. increasing yield along with increasing share price). If you have these, then you can use the “averaging up smartly” mentioned here to purchase them. Fundamental analysis is still required but at least you do not need to start it from the ground up, since you are likely familiar with these companies and treat the analysis as a refresher.

Going The ETF Way

ETFs is another go-to if you want to stay invested but want a lesser amount of fundamental analysis homework. ETFs are good for getting exposed to a particular region/country/industry/sector, or a combination of any of those. In fact, if your portfolio is consisted of just separate companies and bonds, you can jumpstart it into a core-satellite model with ETFs.

My (very) short post ends here. Hope the above provide some jolt in your thoughts.

No comments:

Post a Comment