Individual stock % of portfolio

Would be interesting to hear from the community re what approach you take regarding how you allocate funds to stocks as a % of your overall portfolio - or if that is even a consideration for you.

I didnt think about this when I started investing in Feb this year but am now gradually reallocating funds on a perceived risk / potential reward basis.

What sort of split do you use?

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I aim to have a divested portfolio across multiple sectors as my starting point. My current split looks like this based upon the FT sector type.

Sector % split
Finance 16.50%
Food & Drink 10.62%
Property 7.12%
Tech 12.22%
Utilities 7.09%
Industrials 8.98%
Telco 11.40%
Health 5.67%
Mining 4.75%
ETF 15.36%
Professional Services 0.29%

when it comes to how much £££ I spend on each stock I base it on what I consider the level of risk to be. I generally buy in chunks and top up shares if they perform.

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Similar to @PeteL Ihave a very diverse portfolio and invest in chunks across a couple platforms but I pick many stocks I believe have a good future and buy the dips of whatever is lowest % when depositing generally. :+1:

I do also love the SPACs and put small amounts on many that I like the idea of but treat that a bit like a flutter for the excitement.

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It really depends on your appetite for risk. I think I have some irregularities in the reward centre of my brain (read: I have always enjoyed gambling, although these days I tend towards well researched positive sum investments rather than whacking my salary on England to beat Scotland at 1.20 odds then cry as they happily draw 0-0).

Bearing in mind my disregard for risk, I invest in only a few shares at once, sometimes just 1 share.

I feel like diversifying is just lowering your chances of outperformance. To me having a widely diversified portfolio is like putting a bet on every outcome on a roulette wheel - you are guaranteed not to outperform.

Now if you back a small number of companies you are convinced will succeed, then you could be the next Bezos or Buffet :sunglasses: or you could have terrible performance, but you only have yourself to blame for that.

No need for bemused replies, I am aware of how unpopular my opinion is, but I thought I’d share it for balance (can’t just have a thread of everyone saying how diversified they are) :stuck_out_tongue_closed_eyes:

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@rarther One thing I’d never do is bet on football, I cant stand the sport :rofl:

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My portfolio is very diverse and 10.88% up this year so happy with that :stuck_out_tongue: I do get your views though :+1: I am sensible with 50%, risky with 35% and gambling with 15%

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Mine started of mostly tech based but am slowly building up more ETFs

Sector Col B
Tech 35.5
Other - ETF 31.4
Finance 11.4
Health 5.2
Energy 4.8
Car 4.7
Mining 4.6
Food & Drink 2.0
consumer goods 0.4

I usually add in chunks currently, adding to etfs mainly. But occasionally will put a little amount on something I feel will go up like DARK.

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Thanks for the replies. Within the various industry sectors does anyone have an approach re individual stocks? Does it simply come down to how much money you have available to invest at the time or do you have a clear strategy, e.g. no more than 7.5% for any one stock (I appreciate that won’t necessarily apply for @rarther), 2.5% for high risk etc.? And, if so, do you re-balance periodically to account for share price movements?

How bizarre, I wrote that before the unbelievable 0-0 result. To the millions of people who lost any money on England happily taking the 0-0 draw when they were odds on to win… You need to stop handing Denise Coates any of your hard earned money and start investing in miners on Freetrade for a 100% chance of goals and 0% chance of losing all your money :slightly_smiling_face:

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What do you have for the Eng - Cze game? Or for that matter can you think of 6 numbers for Saturday? :stuck_out_tongue:

I was always taught to invest no less than 2% and no more than 5% in any particular stock