3Mon·

Hello everyone,

I'm 20 and I started investing 400 euros a month in February this year.

I'm currently investing regularly this 400 euros in an accumulation plan divided like this:

100euros each on $CSPX (+0.57%) and $IWRD (+0.36%)

Then 50euros each on $XAIX (+0.89%) and $EIMI (-0.26%)

and then 20euros each on $XOM (-0.08%)
$MO (-1.48%)
$MCD (-0.13%)
$DOW (-0.5%) and $CUBE (-1.35%)

at the same time I'm also reinvesting my dividends.

I'm looking to diversificate more my portfolio since most of the stocks I have are based in the North America zone and mostly in the tech industry and I was hoping for some advice on how to have a better diversification and some advice about dividend growth.

22Positions

€8,832.73

5.23%

9 Comments

PowerWordChill@PowerWordChill

3Mon

With 92% USA share.
Is that intentional?
Why do you have one? WORLD / EM ETF, you don't notice anything about the emerging countries and the rest of the world in your portfolio.

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Patrick B.@bonny0604

3Mon

@PowerWordChill I’m currently investing in the USA market mostly since i think it’s the easiest to aknowledge as a newbie and it’s also the one i have more knowledge about.
obviously i know that i need to diversificate more and i want to but i think i need to understand first new markets before than just start investing without a minimum consciousness

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Giò@Desertzero

3Mon

Great Pft..I would have kept BTC for the next bull run that hasn't started yet....

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Patrick B.@bonny0604

3Mon

@Desertzero I would go back I would keep them and buy more only in those months I had really little experience and I made this trade really at random

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Thomas@UndNun

3Mon

You are still young, in that case I would skip on all dividend stocks and ETFs. In my view those are good once you have reached your saving goals and want to play it safe. Until then you will only loose on performance.

Coca Cola for example gives roughly about 3.5% dividend, that's well in the range of inflation meaning you hardly make money at all.
Whereas with a good ETF on s&p 500 or Berkshire Hathaway you will make real profit for the next 10 years and more.
And since you have much time ahead I would also go for some Nasdaq 100 etf, they are very much tied to the FEDs interest rate, thus sometimes they will go down quite a bit, but Nasdaq is always fast to recover. And over several years there is a really good performance. Can you imagine a world without tech companies?

You can also go for wide moat ETFs if you wan more diversity.

The key point as I had to learn myself is to invest into something that you can keep for 10-20 years. And for that s&p 500 and Nasdaq 100 are great if you don't need the money.
The biggest mistake is to swap in and out stocks or ETFs and having to pay tax on your profits again and again. Tax payed is money missed for reinvesting, and loosing money because of missed compound interest really hurts badly over 10 or even 20 years.
And for individual stocks you should always choose those that even after tax perform better than s&p 500, otherwise it is a waste.

And if you want performance there is no way around US stocks.
60% of all global stocks are US stocks.
And stay away from emerging markets, the performance is meager.
For the time being, since many companies flee China and Chinas population will grow rapidly old soon enough, many move to other countries. For the next few years (maybe much longer) India ETFs seem to be a very good alternative to US stocks.
Currently they perform even much better than S&P 500.

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Patrick B.@bonny0604

3Mon

@UndNun thank you so much for your advice!

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Riccardo@Wiski03

2Mon

Boy little advice if ETFs totally make you 9.30 percent and stocks 7 percent then I suggest you put more in ETFs and don't try to beat the market with those stocks you have. Then I would advise you to sell those stocks under a hundred dollars since they don't make sense. If you have 8 Thousand euros I advise you to review your strategy because either go aggressive or make a pac on ETFs Word

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Patrick B.@bonny0604

2Mon

@Wiski03 then actually on the ETFs I regularly invest 300€ per month fixed while all the other stocks I usually buy them when I have some "leftover" liquidity like 13th, 14th and various money left over, so as time goes by the percentage of ETFs in the portfolio will go up in proportion to the stocks, plus those stocks under 100€ are not randomly thrown in there but even in those 5 I am investing 20€ a month (so 100€) until I get to a decent amount just to increase the dividend income and maybe then that 100€ go and invest it rather in some other ETFs

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Riccardo@Wiski03

2Mon

No need to have all those stocks it's not diversification it's dispersion, if the s&p500 does -10% hypothetical you don't have a covered position.

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