Reminding yourself of your reasons for buying

I thought I would share something that I’ve added to my Google Sheets portfolio tracker recently:

I think it’s important to match the allocation of your choices with the amount of conviction you have in those choices. For me, the conviction level above comes from:

  • How well I know the company
  • How much research I’ve done into it
  • My knowledge of the industry and trends in it
  • How certain I am that the company will succeed in the future

When markets are volatile, I think it’s especially important to review your allocation vs. conviction levels. If markets are tumbling, you don’t want a stock that you’re not sure about making up a huge part of your portfolio. I wish I had this a month ago because it would have helped me reduce my exposure to stocks that I have less conviction in.


Great approach!

Would you consider just buy US tech and UK consumer ETF then? Will cover a lot of what you have here.

Yeah, if it was my pension/deposit savings/etc but the investments I have with Freetrade are more of a hobby.

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brilliant idea!
as someone with little to no trust in decisions made more than 24 hours ago, this would be a great plan for me. Totally stealing this, hope that’s OK :smiley:


Interesting to see you have Nike a lower conviction than Netflix

I still see us wearing Nike shoes in 5 years, but not watching Netflix

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It’s more about how much research I have done into the company and how much I know, rather than what I think their future performance is likely to be. I need to get to know Nike better. :slight_smile:

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