Share Portfolio Allocation Post Brexit

euro and dollar notes

So, this is the beginning of my investment journey. The eventual aim is a solid portfolio of dividend generating shares.

Combined with a few other lines of income this will free me from the need to clock on to earn a living.

Brexit Prompted a Re-Think

Having seen the Pound take a hammering after Brexit I revised my original plan which was to have 50% of my investments in the FTSE 100.

I will instead spread them across the globe. I’m still unsure where I’ll be living in 10 years time so it seems sensible to spread my invesments across a range of currencies.

Receiving some dividends in Dollars, some in Sterling and some in Euros will serve to hedge my income against currency fluctuations.

Post Brexit my investment allocation will be as follows:

  • 50% Worldwide Titans – Big companies, each in the top 100 of their respective index in UK, EU, US, Canada.
  • 20% – Mid cap companies with good dividend growth. The plan is that each year the company and dividend grows by a decent amount. This should ensure that inflation doesn’t erode my living standard.
  • 10% – Smaller companies in rising industries with potential for growth/disruption. Water, Robotics, Healthcare, Energy.
  • 20% – US tracker fund with the lowest management fee. Set and forget.

 Limit of 20 Companies

There’s only so much info I can process so I don’t want to overload myself.

For this reason I’ll be limiting myself to 20 companies, which will limit how many positions I can take in each locale.

No Stupid Bets

My main aim in all of this, besides making a steady income, is to not lose any money on stupid bets…

Back in the days of my feckless youth I placed a few bets on companies.

Falklands Oil and Gas was one such bet, my hope was that they would discover oil off the coast of Argentina.

Genius Level Investments

I bought Falkands Oil and Gas at 168.70. In the space of a few weeks the shares climbed to 243.50. I was a certified genius.

However, when news broke about the lack of oil in one of their exploratory fields the price came crashing down.

I sold at 123.40. They are now trading at 9p. Conclusion, I’m definitely not a genius.

Don’t Lose 25% Per Month

I lost more than 25% of my “investment”. There wasn’t a great deal of analysis on my part, just me jumping on a bandwagon and hoping. It was fun in to watch the shares climb and wonder “what if they discover oil?” “how much will it be worth?”. However, in the end, my ill conceived strategy was shown up for the risky bet that it was.

That was about ten years ago. In the intervening period choices/circumstances forced me to clean out my share accounts and close them down.

But now I’m back and with a slightly more conservative approach. Slow and steady. If I’d adopted this approach about 15 years ago I’d be pretty much set by now.

Ten Baggers Versus Stringfellows

So I’ve given up on the hopes of a series of “ten-baggers”. I’ve tried that approach and realised that it’s is just a way to rapidly relieve yourself of your hard earned cash.

You would be better advised to have a big weekend in Stringfellows. It costs the same, probably slightly more frustrating but you get to see some funbags whilst having a few beers. And you don’t have to sod around setting up share dealing accounts.

 

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