1D·

Core-Satellite Conversion

Hello,

I have a question for you, or rather, I need your advice regarding my core-satellite portfolio.

I’d like to restructure my portfolio. I want to reallocate the weightings and replace SAP.

I’m thinking of a 60/40 weighting.

It should be held for at least 25 years, and dividends aren’t a must since I use up my tax-free allowance every year anyway.

I’ll invest €30,000 to start and contribute €240 monthly to the two ETFs.

I’m thinking of using the Vanguard FTSE All World as the core.

The satellites should be the Amundi Semiconductor ETF, Amazon, Alphabet C, Stryker, Visa, Hannover Re, Hermes, and Rolls-Royce (employee stock).

What do you think?

$VWRL (+0.72%)
$AMZN (-1.08%)
$GOOG (+0.58%)
$V (+1.03%)
$SYK (+2.16%)
$CHIP (+1.64%)
$RR. (+2.48%)
$RMS (+1.77%)
$HNR1 (-1.84%)

8 Comments

capital_captain_2693@capital_captain_2693

21H

I actually think it's pretty good. I'm invested in Visa and Hannover Re myself, and the rest looks good to me, too

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Philipp@Lippe

21H

@capital_captain_2693 Is that how you do it? Should I buy everything at once or wait for lower prices?

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capital_captain_2693@capital_captain_2693

21H

@Lippe You mentioned that your investment horizon is 25 years, so I think it doesn’t really matter when you get started—the main thing is that you do get started. For me, though, I have to say—and this is just my personal take—that I’m a pretty cautious person and tend to buy in installments, unless prices are really at rock bottom and I’m convinced

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Philipp@Lippe

21H

That makes sense, yeah. Thanks for your input. As for the portfolio mix and any overlaps, is this approach okay, or would you leave something out or maybe replace it? I’m already invested in Stryker, Visa, and Amazon—or rather, in the ETFs that include them. I’d like to sell SAP as soon as I’m in the black on that one.

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capital_captain_2693@capital_captain_2693

17H

@Lippe I’d do exactly the same thing; the only thing I’m not so keen on is the semiconductor ETF, simply because of the high valuations there—take AMD, for example—where perfection is already priced in, and if earnings don’t quite meet expectations, I can imagine it taking a serious hit. But of course, I don’t know the position size—as a small side bet, maybe to boost returns, but I wouldn’t hold a larger stake.

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Philipp@Lippe

17H

Well, I'm up 40% there, and I was thinking of using the same weighting as for the individual positions.
Planned entry points would be around €220 for Hannover Re, around €1,450 for Hermes, and €290 for Alphabet. So I’d wait out the minor pullbacks.

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Marvin.22b@Marvin22b

21H

As a new investor, you shouldn't be blinded by Semis. LG

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Philipp@Lippe

21H

@Marvin22b I'm not quite following. What are you trying to tell me? 😬

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