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I don't want to be unintelligent, but what is the problem with the many positions?
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@Gxnter I don't know why you have chosen so many and exactly these stocks and what your actual strategy should be? You want to build up assets, so you have to invest accordingly. The micro-positions have zero impact, even if a few of them double in value, it will have virtually no effect on your overall portfolio value. My tip is to either invest everything in 1-2 ETFs until you have reached a certain target size or build a concentrated portfolio of quality stocks that have the potential to achieve a CAGR of more than 15%
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@Gxnter It simply makes it difficult to build up anything sensible with individual stocks. 10 and even €100 won't get you very far in the long term, even if a single share performs well. The ones that do poorly then spoil your small success with the ones that do well. It's basically like an ETF, only probably worse. Basically, you combine the disadvantages of an ETF with the disadvantages of individual shares and only enjoy the advantages to a lesser extent.
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@Krush82 the majority of the individual shares all pay dividends and care has been taken to ensure that these remain stable the distributions are distributed throughout the year, i.e. I receive distributions almost every day, whether I own a share worth €500 that pays me €20 a year or 50 different shares worth €500 that also pay me €20 a year makes no difference, or am I wrong?🤔 i only pay 0.15% processing fees on my broker anyway, i.e. the same, i'm not hoping for any price increases with these shares i just like to see the reinvestment of my distributions and, as i said, i get news about dividend distributions almost every day, even if it's just a few cents
I will increase the tech and cyber security stocks quite a bit but my main investments will be in the msci world and the S&P 500
My goals for now are 1000€ in the dividend stocks
10000€ in the s&p
20000€ in the msci world
And about another €2000 in tech and cyber security stocks, which should be about 15 different ones
Please enlighten me and why this is the wrong way to go
Kind regards Günter
I will increase the tech and cyber security stocks quite a bit but my main investments will be in the msci world and the S&P 500
My goals for now are 1000€ in the dividend stocks
10000€ in the s&p
20000€ in the msci world
And about another €2000 in tech and cyber security stocks, which should be about 15 different ones
Please enlighten me and why this is the wrong way to go
Kind regards Günter
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@Gxnter Dividends at a young age / when building up assets or for small portfolios are generally nonsense. There are also one or more articles on this topic here. Just "search"
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@Gxnter what do you get out of dividend shares?
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@Gxnter What are the costs of selling? If you ever have to sell, you will pay more fees than you earn from the sale. From a return perspective, it doesn't really matter whether you have 700 positions with a portfolio value of €1k or €1m. However, individual shares have to be "maintained", which is a lot of work for many shares and is not in proportion to the capital invested for each company. An analysis of the annual report with one hour of work makes more sense for a €10k position than for a €10 position. In addition, the more positions a portfolio contains, the closer it gets to the benchmark index. So, at least from a return perspective, many positions do not always make sense. If you absolutely want to invest in individual stocks, then I would also choose 15-20 stocks to start with. This is enough for diversification and the points mentioned above are put into perspective.
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@MoKi28 I just really like that feeling of you've earned something and you do it every day
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@Gxnter I can well understand that, I don't see dividends as negatively as is sometimes expressed here. Both views have pros and cons. If dividends motivate you and you don't pursue this strategy naively, but take the negative aspects into account, then you can definitely achieve your personal intentions and successes. In my view, you have to find a middle way for yourself. Everything can be beneficial or detrimental if you overdo it or go about it the wrong way. If the price for particularly high distributions or distributions on certain dates is too high (e.g. lack of performance or too high, unsustainable distributions) then you should reconsider.
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@Gxnter but maximum return is the most important
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@MoKi28 it makes no difference whether you have 50 positions that all yield €2 a year or 1 that yields €100 a year
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