3G·

Diversification / sector breakdown

Hello everyone,


Yesterday showed me once again how important it is to invest across all sectors. Anyone who invests in individual stocks should "divide" their money into as many different sectors as possible.

Tech stocks did not do so well yesterday, in contrast to some classic blue chips such as $PEP (-0,66%) or $JNJ (-0,09%) . Even if these stocks are no longer a huge growth story, they give my portfolio stability in stormy times.

So I was still able to end the day on a positive note yesterday, even though I $AVGO (+4,88%) and $KLAC (-0,67%) etc. in my portfolio.

This was probably also due to the low weighting here and there, but I'm still happy about it and feel somehow confirmed that I'm on the right track with my "strategy".


These are my current thoughts on this....how did you see yesterday?


Greetings from DivGrowth1989 ;)

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8 Commenti

immagine del profilo
Well, this will go against the thinking of many people here.

But in my opinion it's total nonsense. The two stocks have been going completely sideways for 3-4 years, while stocks like NVIDIA and Broadcom have risen massively. Sure, the keyword is AI hype, but I'd rather bet on something like that and take the risk of a -10% drop than a sideways movement for years and talk myself into the high dividend. I also have no idea that Jnj or Pepsi will outperform NVIDIA over the next few years.

But everyone as they feel comfortable👍
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immagine del profilo
@xzxzx How do you decide when the AI hype is over?
immagine del profilo
@xzxzx certainly not outperforming, but brings stability to the portfolio, which is why i'm betting on a mix of growth and dividends/dividend growth.
so i can sit back and relax on days like yesterday :)
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immagine del profilo
Sometimes it goes one way and sometimes another. Yesterday I also had a big plus with my tobacco stocks and Reits. And made a first!!! purchase in Nvidia. For diversification, as I am completely underweighted in tech. However, measured against the growth of the last few years, my performance is lagging far behind the more offensive strategies and the indices. However, I am not looking for growth, capital preservation and cash flow are my premise, so such stormy times pass me by and I can live well with my underperformance because I have chosen it that way. Investing in the early years is different in my eyes.... and days like yesterday are part of this and should be used consistently for targeted additional purchases in order to be rewarded later on
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immagine del profilo
@Dividendenopi As someone who is still investing in the "early years" I am also taking a more aggressive strategy. (What's the point of a safe strategy if I'm only just over the exemption limits for any social benefits?) But that also means that I am fully invested. It's rather difficult to add to the portfolio, if I do then by reallocating and the small slide down yesterday wasn't dramatic enough for that. When the Nasdaq is double-digit away from the AZH, I'll start thinking about whether it makes sense to reallocate.
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immagine del profilo
@Chandra It's all good. And your all-in approach and an apparently relaxed view of days like yesterday will help you move forward in the long run. It's everyone's money that they invest and I find the many individual approaches that I get to know here very exciting.
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immagine del profilo
I see it very similarly. Yesterday (almost) didn't shake me up at all, of course a few positions were down, but in the end the overall portfolio was even slightly up. And yes, I'm certainly not performing in the top league over the year, but yesterday still showed me that I'm achieving what I want from my portfolio - healthy, solid price growth on a stable basis without huge swings on a daily basis. So all's well that ends well, from today the tech bros can outperform me again 😉
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immagine del profilo
I had a similar experience yesterday. First, the sell-off in the AI tech sector resulted in a substantial loss, and then at the end of the day the money obviously flowed into other sectors - such as consumer staples and consumer goods - so that I actually ended the day with a slight gain. In any case, it was a decent correction, but thanks to diversification it didn't hit me hard in the end. It's just that the AI stocks are no longer quite as high in the plus...
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