How To Build a Beast Stock Market Portfolio 2018

TL;DR

Learn how to build a well-diversified stock portfolio with a minimum of four stocks and a maximum of nine, including an "automatic" stock like Apple, Google, or Facebook and a number one stock that you believe in strongly.

Transcript

how to build a bee stock market portfolio that's exactly what we're talking about here today guys I guess so many questions from people all the time on like how to build up a portfolio like like what's your thought process behind it where do you put value stocks versus growth stocks and all those type of things how many stocks should a person own e... Read More

Key Insights

• *️⃣ Diversification is key in building a strong stock portfolio to mitigate risks and maximize potential returns.
• 🙃 Owning an "automatic" stock provides stability and potential long-term growth.
• ⚖️ Growth-focused stocks should have a balance of current performance and potential growth prospects.
• 🖐️ Value plays help maintain a balanced and safe portfolio.
• 🧘 A small position in a speculative stock adds excitement but should not compromise the overall portfolio's risk management.
• 👨‍💼 Avoid investing in unprofitable companies to build a portfolio focused on profitable businesses.
• 🔂 Avoid concentration in a single industry to ensure proper diversification.

Questions & Answers

Q: How many stocks should be in a diversified portfolio?

It is recommended to own at least four stocks and a maximum of nine for a well-diversified portfolio. Owning fewer than four can be risky, while owning more than nine can make it difficult to manage and stay informed about each company.

Q: Why is it important to own an "automatic" stock?

An "automatic" stock, such as Apple, Google, or Facebook, provides a sense of stability and potential long-term growth. These companies are considered close to guaranteed money-makers in the market, making them essential for diversification.

Q: What should be the focus of stocks three and four in the portfolio?

Stocks three and four should be growth-focused, with potential for significant growth over the next few years. These companies should have something going for their business already, in addition to potential long-term prospects.

Q: Why should value plays be included in the portfolio?

Value plays, which are low P/E ratio stocks, provide a sense of stability and a good value proposition. These stocks represent a safer bet and ensure that the portfolio is not solely focused on growth stocks.

Summary & Key Takeaways

• Building a diversified stock portfolio involves owning at least four stocks, with a maximum of nine to ensure proper management of research and information.

• An "automatic" stock, such as Apple, Google, or Facebook, is recommended for stability and potential long-term growth.

• The portfolio should include growth-focused stocks, value plays with low P/E ratios, and a small position in a speculative stock.