Alright guys, here's a different topic.
I'm interested in what sort of concepts different people use to construct their
portfolios. I've heard a lot about people picking individual shares, about
the merits of a number of individual companies (the breadth of some of
the research flowing through this forum is extremely enlightening). But
how do you hang it all together?
Surely you can analyse a share 'til the cows come
home, but what does that mean for the performance of your portfolio? Some
of the questions that come to mind are: have you got a balance between income
producing assets and growth assets? What sort of sectoral exposure do you
have to the main drivers of the NZ economy? Are you thin in one area,
thick in another etc etc etc .....
I spent a lot of time building our (albeit small)
portfolio from the ground up, working out what sort of balance of companies
would give us the return we were after. Having worked out the categories I
wanted to cover - Income, Growth, Stability - and then having applied a
relative weighting to each, I looked for the companies that I could fit into
each of those gaps.
Over the past eight months we've put together the
eight companies that comprise our portfolio, and barring any particularly
interesting buying opportunities (if only they would float the Nat. Bank!!)
we'll probably just deepen on these until we get them into something close to
our target weightings.
So that's what we've done. Anybody got
anything they want to share....? I'm sure even you techies have got a plan
Our Portfolio (fair's fair: can't receive
* Capital Properties
* Fletcher Building
* Waste Management
* Baycorp Adv.