Am I mad or making sense?

TalleyRand83 · 09-02-2021 11:29am #1

Hi new to boards..long time listener, first time caller.

So, I'm not a total novice regarding financial trading but I would be the flighty type and skim the detail.

I've decided a simple straightforward weekly investment plan using revolut which is, throwing approx €200 in a week and putting it towards solid stocks :

30% Berkshire Hathaway
25% Disney
15% Walmart
15% Shopify
10% J&J
and a silly 5% BTC

Am I right, wrong, silly or sensible? I get that its very basic one dimensional plan but that appeals to me

sirboby · 09-02-2021 11:34am

Looks like a very solid starter portfolio.

You won't get any ridiculous gains, but you are almost guaranteed some positive return.

The sooner that you get this set up the better, Good Luck investing

robman60 · 09-02-2021 11:37am

It sounds very reasonable to me. Berkshire is a little bit like owning a (tech-light) index fund and not subject to the insane tax treatment of ETFs. I think it does well whatever the market because they have so much cash which they could really use if there was a big market sell-off.

Personally I think Disney has a very high price at the moment. I own a little, but at a price point around $100. I would possible go to 15% max on Disney and put the other 10% in Amazon or (if you're willing to take more of a risk), Alibaba.

TalleyRand83 · 09-02-2021 11:44am

fair enough thanks, I do like the solid shares because I understand them however I'm not a conservative type by any means.....only reason I haven't thrown in a few mad ones is I don't want to have to keep an eye on it too much.

I'd love to get a solid one with big potential (crystal ball!) like Paddy Power shares in the mid noughties and was hoping Disney would be it, I would have thought bandwagon had arrived with Amazon?

robman60 · 09-02-2021 12:10pm

Yeah Amazon is unlikely to be the huge multiple return, but I think they still have huge growth potential in the web side and the ability to grow their margins on the retail side with automation and vertical integration.

Alibaba probably has the possibility of greater returns but there is serious regulatory risk in China (which is part of the reason the price has dropped off from its highs). Something like Alibaba would also diversify you away from the US towards a more high growth region.

PaddyTheNth · 09-02-2021 2:12pm

The only aspect that would concern me is revolut as the broker. I think you'll get very little protection or support from them if anything goes wrong. Their 'broker' isn't in the EU as far as I know. You'll be a 2nd class citizen for them.

I'd be a little more comfortable with degiro, at least until my fund has built to a large amount. Haven't looked at eToro at all, in terms of low cost brokers. Same concern re trading212, and they also sell your order flow which isn't beneficial for you.

Static M.e. · 09-02-2021 2:56pm

I'm curious, and not a criticism, but if you are buying five shares monthly how much will you be paying in fees a month?

robman60 · 09-02-2021 2:59pm

Static M.e. wrote: »

I'm curious, and not a criticism, but if you are buying five shares monthly how much will you be paying in fees a month?

Nothing, if you're using the Trading 212 or Revolut (three free trades a month).

Jimbobjoeyman · 09-02-2021 5:36pm

TalleyRand83 wrote: »

Hi new to boards..long time listener, first time caller.

So, I'm not a total novice regarding financial trading but I would be the flighty type and skim the detail.

I've decided a simple straightforward weekly investment plan using revolut which is, throwing approx €200 in a week and putting it towards solid stocks :

30% Berkshire Hathaway
25% Disney
15% Walmart
15% Shopify
10% J&J
and a silly 5% BTC

Am I right, wrong, silly or sensible? I get that its very basic one dimensional plan but that appeals to me

These %'s are very high.
Disney goes tits up for whatever reason you've lost 25% on your portfolio (remember Anglo was too big to fail at one point and we all know how that went).

Also, will you be able to buy fractional shares of BH with your broker ?
Because there's no way your buying BH putting in 200 a week without that or using derivatives which come with another layer of risk and cost.

sirboby · 09-02-2021 11:39pm

Jimbobjoeyman wrote: »

These %'s are very high.
Disney goes tits up for whatever reason you've lost 25% on your portfolio (remember Anglo was too big to fail at one point and we all know how that went).

Also, will you be able to buy fractional shares of BH with your broker ?
Because there's no way your buying BH putting in 200 a week without that or using derivatives which come with another layer of risk and cost.

If using Revolt as mentioned then yeah you can get fractional shares,
For €200 a month 5-6 stocks a month is more than enough. I wouldn't be worried about putting 30% into one equity especially if its the likes of Berkshire or Disney.

Best to start out with a small amount of stocks and maybe in 6 months you might decide to adjust weightings or start buying Amazon instead of Shopify etc. That is fine and decisions like that will happen down the line.

Best thing you can do now is get in the game, get in the habit of putting something asside, the portfolio in question looks great

Jimbobjoeyman · 09-02-2021 11:55pm

sirboby wrote: »

If using Revolt as mentioned then yeah you can get fractional shares,
For €200 a month 5-6 stocks a month is more than enough. I wouldn't be worried about putting 30% into one equity especially if its the likes of Berkshire or Disney.

Best to start out with a small amount of stocks and maybe in 6 months you might decide to adjust weightings or start buying Amazon instead of Shopify etc. That is fine and decisions like that will happen down the line.

Best thing you can do now is get in the game, get in the habit of putting something asside, the portfolio in question looks great

I think this is inadvisable and I'm going to leave it at that.

Portfolio diversification isn't something you should ever throw away because you think something is safe.
The Irish banks were safe as houses during the Celtic tiger and we all know how both of those panned out.

TalleyRand83 · 10-02-2021 12:30am

Jimbobjoeyman wrote: »

I think this is inadvisable and I'm going to leave it at that.

Portfolio diversification isn't something you should ever throw away because you think something is safe.
The Irish banks were safe as houses during the Celtic tiger and we all know how both of those panned out.

I dunno, I wouldn’t compare Anglo to Disney at all, even as a company Disney are a lot more diverse than an Irish lender....Disney has won by everyone staying in, Disney Plus and will win by everyone going out! I think it’ll be a strong strong company in 100 years.

AndrewJRenko · 10-02-2021 12:34am

TalleyRand83 wrote: »

Hi new to boards..long time listener, first time caller.

So, I'm not a total novice regarding financial trading but I would be the flighty type and skim the detail.

I've decided a simple straightforward weekly investment plan using revolut which is, throwing approx €200 in a week and putting it towards solid stocks :

30% Berkshire Hathaway
25% Disney
15% Walmart
15% Shopify
10% J&J
and a silly 5% BTC

Am I right, wrong, silly or sensible? I get that its very basic one dimensional plan but that appeals to me

Are you totally dependent on the US economy? Why no Asian or BRIC or European businesses in there?

If the US economy tanks, you're screwed.

TalleyRand83 · 10-02-2021 12:38am

AndrewJRenko wrote: »

Are you totally dependent on the US economy? Why no Asian or BRIC or European businesses in there?

If the US economy tanks, you're screwed.

I take your point, but if it does tank, how long does it tank for? This is a 4to 5 year (or longer if economy wrong way round at that time) weekly buy in.

I’m just for stocks I know that should last the test of time, don’t know the Asian stocks enough

AndrewJRenko · 10-02-2021 12:39am

TalleyRand83 wrote: »

I take your point, but if it does tank, how long does it tank for? This is a 4to 5 year (or longer if economy wrong way round at that time) weekly buy in.

I’m just for stocks I know that should last the test of time, don’t know the Asian stocks enough

So why not buy into a fund that is geographically diversified?

Jimbobjoeyman · 10-02-2021 12:39am

TalleyRand83 wrote: »

I dunno, I wouldn’t compare Anglo to Disney at all, even as a company Disney are a lot more diverse than an Irish lender....Disney has won by everyone staying in, Disney Plus and will win by everyone going out! I think it’ll be a strong strong company in 100 years.

Your completely missing the point.
Diversification is worthwhile.

If I put forward a portfolio idea like this in work I'd be fired and with good reason.

markpb · 10-02-2021 12:42am

AndrewJRenko wrote: »

Are you totally dependent on the US economy? Why no Asian or BRIC or European businesses in there?

If the US economy tanks, you're screwed.

OP is proposing to use Revolut which only trades a selection of US shares.

TalleyRand83 · 10-02-2021 12:47am

Jimbobjoeyman wrote: »

Your completely missing the point.
Diversification is worthwhile.

If I put forward a portfolio idea like this in work I'd be fired and with good reason.

I don’t want to seem like I’ve started this thread to get advice and now arguing with posters trying to help but it’s hard to be very diverse with the small “leisure” sums I’m throwing in.........my thinking is these picks are diverse enough entertainment / tech / grocery etc for my little enjoyment. Nothing exciting in these picks as they are solid as can be I would have thought?

TalleyRand83 · 10-02-2021 12:48am

markpb wrote: »

OP is proposing to use Revolut which only trades a selection of US shares.

Yes, easy as could be and shares I know. Maybe I’m over simplifying it all in my head

AndrewJRenko · 10-02-2021 12:49am

markpb wrote: »

OP is proposing to use Revolut which only trades a selection of US shares.

So why not buy into a fund that is geographically diversified?

Jimbobjoeyman · 10-02-2021 12:50am

TalleyRand83 wrote: »

I don’t want to seem like I’ve started this thread to get advice and now arguing with posters trying to help but it’s hard to be very diverse with the small “leisure” sums I’m throwing in.........my thinking is these picks are diverse enough entertainment / tech / grocery etc for my little enjoyment. Nothing exciting in these picks as they are solid as can be I would have thought?

You'd be better off saving and investing once a month rather than every week and investing it in a diversified structure other than an ETF seems ETF's are inefficient for tax reasons in Ireland.

Nobody is arguing but you did ask if you were mad

TalleyRand83 · 10-02-2021 1:09am

Jimbobjoeyman wrote: »

You'd be better off saving and investing once a month rather than every week and investing it in a diversified structure other than an ETF seems ETF's are inefficient for tax reasons in Ireland.

Nobody is arguing but you did ask if you were mad

There’s an element of my getting money into something before I get silly! Never been a good saver. Cheers

Mad_maxx · 10-02-2021 9:39am

AndrewJRenko wrote: »

So why not buy into a fund that is geographically diversified?

The European markets have never held up if the U.S took a dump

Owning U.S only is diversification enough, Europe is far too heavily weighed to banks and energy

Zombie sectors

elbyrneo · 10-02-2021 9:43am

Mad_maxx wrote: »

The European markets have never held up if the U.S took a dump

Owning U.S only is diversification enough, Europe is far too heavily weighed to banks and energy

Zombie sectors

You will be very exposed to USD:EUR FX though.

Cameron326 · 10-02-2021 1:45pm

Can anyone recommend a nice geographically diverse fund (or even something covering similar ground as S&P) as an ETF alternative? Are all funds and trusts only taxed at 33% whereas ETFs all at 41%?

AndrewJRenko · 10-02-2021 1:47pm

Mad_maxx wrote: »

The European markets have never held up if the U.S took a dump

Owning U.S only is diversification enough, Europe is far too heavily weighed to banks and energy

Zombie sectors

There's more to geographic diversification than just Europe.

TalleyRand83 · 10-02-2021 1:57pm

elbyrneo wrote: »

You will be very exposed to USD:EUR FX though.

Yes I thought of that and something I can protect against when more heavily invested.....could also get the benefit of it if USD strengthens

Mad_maxx · 10-02-2021 9:27pm

elbyrneo wrote: »

You will be very exposed to USD:EUR FX though.

No you won't, American corporations draw much of their earnings in euros so if the euro is strong against the dollar , earnings rise

even you own only eurozone based companies , they too collect much of their earnings outside the eurozone

TalleyRand83 · 08-03-2021 5:51pm

Well between some posts here and my own over-activeness in looking at revolut and e-toro I've gone down a much broader route within in one month!!
I'm using the money I would have put aside for some punting on horses and football so a bit of satisfaction on my part.

Anyone feel free to judge my portfolio and point out gaps or weakness?:

Berkshire 11%
IAG 8%
Disney 8%
Walmart 6%
J & J 5%
Apple 5%
Amazon5%
Colgate 4%
P&G 4%
SAP 4%
Shopfiy 4%
Unilever 4%
MasterCard 3%
Diageo 3%
Conoco Phillips 3%
Coca Cola 2%
Shell 1%
Docusign 1%

And a few other also rans mostly in cloud tech space.

Just wondering IfI'm heading the right course, wondering also if I should add the likes of VISA to compliment MasterCard or am I going down a "what if" rabbit hole.

I'm sure I need to add more high growth chance stocks but don't know where these are yet!

robman60 · 08-03-2021 5:55pm

It looks fairly solid and diversified to me. I think pick one of Visa and Mastercard, you've chosen Mastercard and that's fine but no point holding both as they don't really add diversification as they're likely to move in the same direction.

You did not add any Alibaba which I mentioned when you started this. It's approaching attractive levels at the moment and would give you some exposure to China. I think it fits the bill of "high growth chance stocks" as it has the regulatory risk from China but also huge upside potential.

TalleyRand83 · 08-03-2021 6:01pm

robman60 wrote: »

It looks fairly solid and diversified to me. I think pick one of Visa and Mastercard, you've chosen Mastercard and that's fine but no point holding both as they don't really add diversification as they're likely to move in the same direction.

You did not add any Alibaba which I mentioned when you started this. It's approaching attractive levels at the moment and would give you some exposure to China. I think it fits the bill of "high growth chance stocks" as it has the regulatory risk from China but also huge upside potential.

Will look to add Alibaba actually bought a small bit of Baozun already.
Chopping and changing my mind already as to what I want in safe shares, wild cards etc

I have great timing, started beginning of Feb!

Am I mad or making sense?

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