Do you want to build a stock investment portfolio, but you don’t know where to start?
I built a multi-million dollar investment portfolio. In this blog, I break down the best investments and the stocks in which I invest.
Plus, I share exactly what I would invest in if I started my investing journey again.
Ultimately, you need to decide where you are going to invest your money.
However, I am confident that what I am about to share with you will bring you great results for many decades.
If you are ready to invest towards financial freedom, read this!
Watch the video below:
https://www.youtube.com/watch?v=xXlJfparm3c
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This is the stock investment portfolio I would start with.
This is quite conservative, but it carries a certain level of risk. This portfolio is mainly composed of index fundsindividual and corporate actions.
Before diving into this blog, you should know that I am not a financial advisor. I’m not here to give you investment advice. Everything I buy or trade is based on my opinion and experience as an investor. You need to do your research and due diligence and understand the risks involved when it comes to investing in the stock market.
I share with you a long-term investment portfolio. For what? Well, the stock market is volatile. During the pandemic, there was a major stock market crash. Those who panicked and sold their stocks lost a lot of money. Conversely, those who waited recovered. Typically, there is a correction every year in the market.
This is when the market drops as much as 10%. If you are a long-term investor, you will not be worried because you will know that things will turn around. You might even be excited because it’s an opportunity for you to buy more of the positions you hold at a lower price.
I understand that each of you is in a different financial situation.
The sooner you start investing, the more money you will make in the long run. If you are older, you may not be able to afford to take as much risk. Your situation, age-wise and financially, will help you determine where to invest your money.
Watch the video above where I share my computer screen and show you the best actions for beginners!
Index funds
Vanguard S&P 500 ETF (VOO).
This is a stock that tracks the S&P 500, which includes the 500 largest companies in the United States. This stock trades on the American stock exchange in American currency. The United States is the largest economy in the world. It generates the highest returns of any country or economy and includes the world’s largest companies.
The greatest investor of all time, Warren Buffett, said that investing in the S&P 500 index was the best investment a beginning investor could make. Upon his death, he plans to invest 90% of his fortune in the S&P 500 index.
The S&P 500 gives you diversification among all the largest large-cap companies in the United States. Historically, the S&P 500 returns about 10% per year. This is an excellent return. It also pays dividends.
Currently, this stock is trading at $409. Net assets stand at $753 billion, with a dividend yield of 1.34% and an expense ratio of 0.03%.
It’s a great investment to start with. It’s a must-have in my portfolio. I always add more every time there is a fix or a crash.
Vanguard Total Global Equity Index Fund (VT)
This index fund gives you exposure to the United States and the world’s largest companies, such as China, Europe, South America and Taiwan. The only downside to the S&P 500 index ETF is that it is weighted more heavily in the U.S. economy.
The US economy will give you the highest returns of any other economy in the world, but it also makes sense to diversify outside of the US.
Currently, this stock is trading at $105. Net assets are $30 billion, with a dividend yield of 1.65% and an expense ratio of 0.08%.
Vanguard Real Estate Index Fund (VNQ)
If you want dividends, the first place I would look is real estate. This index fund invests in real estate investment trusts (REIT). These are companies that own real estate. I think we can all agree that real estate is a great long-term investment.
Real estate behaves differently than a stock market. Currently, this stock is trading at $106. Net assets are $77 billion, with a dividend yield of 2.34% and an expense ratio of 0.12%.
When it comes to dividends, growth should be prioritized over income. When you have more time on your hands, you want to grow.
Usually, companies that pay high dividends pay out a large portion of their profits. However, they do not reinvest this money to grow the business. This index fund holds many REITs that pay high dividends, but also grow as real estate grows.
Vanguard High Dividend Yield Index Fund (VYM)
This index fund holds many dividend-paying and growth stocks. In fact, many of the companies that are part of this index fund are Dividend Aristocrats. These are large-cap S&P 500 companies.
Currently, this stock is trading at $107. Net assets are $48 billion, with a dividend yield of 2.79% and an expense ratio of 0.06%.
Individual businesses
At this point in your investment portfolio, you may decide to add some individual companies to your portfolio. You need to understand that this carries a higher risk. You don’t just buy one sector.
Instead, you choose individual companies from some of the companies in these indexes. If something happens to a business, you may lose money. At the same time, you can achieve growth of more than 10% per year.
When it comes to investing in individual companies, I would recommend investing in large or ultra-large cap companies. They are the biggest companies in the world.
If you want growth, invest in technology companies.
Some of my favorite diversified technology companies that I have made the most money with are:
Yes, these companies are overvalued and overvalued, but they have a lot of upside. You need to do your research to determine which technology company you want to invest in and hold for the long term. However, I don’t think you can go wrong with any of them.
If you don’t feel comfortable with the risk of investing in individual companies, you can research indexes that invest in that sector. For example, one of them would be Vanguard Information Technology Index Fund (VGT).
You might also consider adding more dividends to your portfolio. Dividends are great if you want income. My favorite way to earn dividends is in the financial sector.
I like bank stocks.
I am very familiar with the Canadian banking system since I have lived in Canada. We have excellent Canadian banks. They all pay incredible dividends, some as high as 5%. If you live in the United States, you can buy these companies on the New York Stock Exchange:
Alternatively, if you prefer to stay in the United States, there are excellent banks in the United States, such as Bank of America Corporation (BAC) Or JPMorgan Chase & Co. (JPM).
If you want to take more risk, decide on a certain percentage of your portfolio that you will devote to it.
I think a good allocation would be 50-75% in index funds, 25-50% in individual companies, and 20% in higher risk investments.
For the average person, index funds are the way to go. Set it, forget it and stick with it for the long haul.
However, as an investor, it is also important to continue to build your portfolio over the long term. Decide on a certain amount of money you are willing to invest to start and hold certain positions.
These are the BEST titles for beginners.
If you’re ready to start investing, you’ll want to open a stock brokerage account, like UsBull. This will allow you to buy and sell different types of investments.
Finally, if you want to become an investor, you need to learn how to manage your existing money.
This will ensure that you have disposable income to build your investment portfolio. This is how you can grow your portfolio in the long term.
Investing in your future is one of the best investments you can make. The sooner you start investing, the sooner you can create financial freedom. On that note, good investment!
Are you ready to start managing your money so you have more to invest? CLICK HERE to get instant access to my FREE financial tracking video and worksheet!
