What are your investing plans for 2020?

[Phil]

What are your plans for your portfolio in 2020?

Do you have a strategy for the year? Are you looking to change the way you invest? Any new year investing resolutions?

My plan for the year

For most of 2019 I only had a couple of stocks in Freetrade, but over the last 3-4 months, I started to ramp up my contributions and build out a portfolio. This is how it’s allocated at the moment:

My strategy is to invest in consumer and tech companies that I have personal experience of, or know enough about to be confident in.

There are four things I’m looking to change as soon as possible:

1. In most months I’ve been adding new companies rather than buying more shares of ones I already have. It means I haven’t been “buying the dip” and taking advantage of drops in prices to add more.

2. There are some companies (e.g. Google, Amazon) that I can’t buy because the cost of a single share is so high. Once fractional shares are live, I’ll add them.

3. The allocation of some companies in my portfolio is based on the cost of a single share, so some make up a greater % simply because of their share price. Again, once fractional shares are available, I’ll be able to adjust this.

4. Add a few European companies when they become available. I have LVMH, Airbus and Adidas on my watchlist.

As I mentioned in my topic about what I’d learned in 2019, I now have a tab in my Google Sheet to help me plan the month ahead. This is what it currently looks like for January:

This is useful for working out what I can afford given individual stock prices and force myself to be aware of earning dates.

What are your plans for 2020?

[anon810895]

I’ve got a full rebalance in motion at the moment that will hopefully be finished in April.

I’m aiming for 70% of my portfolio in diversified ETFs and the rest will be stockpicking - aiming for 30 stocks at 1% allocation each, but free to tweak this if I feel I have a winner!

I’m currently overexposed to the finance sector as I hold:

Barclays
Lloyds
Metro
OneSavings

So Lloyds and Metro are on notice! They’re both in good profit at the moment, but I feel I can eek out just a little more before pulling the trigger.

Next on my list to go is Vodafone, they’re hovering on the one percent loss line at the moment so I’m hanging on for some better news.

I’m also considering ditching Bluefield Solar because the fees are so high. It has done quite well for me though.

The last to go would be ASOS. Feel like I got them at a great time and now it’s time to take the cash, but I’m also feeling super greedy and would like to wait out for their results…

That will leave me with about 23 stocks, should be just enough space for some fractionals and some key pharma and green energy companies I’m interested in when the new features launch.

[krr13]

@anon810895

I’m currently overexposed to the finance sector as I hold:

Barclays
Lloyds
Metro
OneSavings

I’m looking at HSBC. They are restructuring the business so I might hold off a while longer. I think they pay 4xdivi a year.

[beluga (Gary)]

@Phil Great portfolio! You seem deliberate about not buying ETFs. Can you share your thinking about ETFs?

Also, where do you get the earnings call dates from?

As for myself, I’ll change my strategy in 2020. I’ll invest in the FTSE All World stocks ETF every month, and I’ll pick 2-3 “tigers”, i.e. companies I think will do outstanding over time, both big (e.g. Apple) and small (e.g. Games Workshop) and buy as much as I can each month. Fractionals will help my strategy.

[Stefano]

Mainly Nasdaq 100.

[Richard (Freetrade 2 Financial Freedom)]

Fractional shares will help with my allocations also

[Alex5 (Alessio)]

Continue to have 10-15% of my saving invested in the stock market mainly for long term but also with a few 1-2 month/s targeted trade. Also, continue my financial education and stick to my budget saving some money each month to acquire assets on freetrade ( I am a student and it is not easy).

I am investing from July 2019, so still new to this world but very eager to learn. When I have changed from ISA to Basic account in November i have started with this strategy.

My strategy for 2020 is to acquire passive index, especially when they drop in price, for longtime gain with compound interest. Particularly insisting on FTSE 100 ( my biggest holding)

But also MSCI world, emerging markets and S&P500.

To recap 50 % capital on passive index. The rest 30% diversified through different sectors with both growth and dividend company (mainly UK). Some example Centamin, avast, imperial brands, Aviva, Ceres, Bohoo:

As the passive index I would like to hold this stock for the long term alimented by part of my dividend and new saving that I keep putting each month. I would like to be better diversified and get more exposure on non UK market.

At the moment I do not hold any US share because i do not like the additional risk of currency fluctuation. Despite I am waiting I have an eye on Abbvie (my favourite and most profitable asset in my old ISA that I have not bought again because of the recent up), Apple and Tesla (fractional share would help).

I always trying to keep 20% of my account in cash on invest in short trade (for fun and company about to pay dividend). For example, in November and December I had made some small profit by capital gain and (future) dividend Royal Mail, Halford, Biffa, Vodafone. I have bought when the company were undervalued and going ex dividend. Sold when the company were up and waiting for dividend. Still hold Vodafone but I will sell the majority soon.

I am not an expert investor but I found useful leave 20% of your capital in cash or play money. So if I cannot control my emotion instead of not sticking on my strategy I use those money. The rest stay for the long term.

I had some gain but I am not here for the short run. Trying hard to compound and invest in assets!

[Phil]

@beluga

@Phil Great portfolio! You seem deliberate about not buying ETFs. Can you share your thinking about ETFs?

For me, investing is a hobby and the money I have in Freetrade is not critical to my financial future. My portfolio is made up of individual stocks because I find investing in them more interesting and more rewarding. I‘m also comfortable with the extra risk vs ETFs.

If I was investing a larger amount of money or it was money that was essential to my financial future or it was something that I didn’t want to spend a lot of time doing, I would definitely have it in ETFs.

@beluga

Also, where do you get the earnings call dates from?

From each company’s investor relations website. It’s not a Google Finance formula or anything like that (which would be nice!)

[Gaz92]

Can I ask why you have both IWDG and VWRL? It seems odd to have 2 global trackers - or is it simply because the MSCI one is hedged?

For 2020, I’ve stopped topping up my regular investments as I’m hoping for a big market drop, hence i’m building up my cash reserves.

[krr13]

@Gaz92

For 2020, I’ve stopped topping up my regular investments as I’m hoping for a big market drop,

As am I. Although I thought we would see a drop in 2019 and it never happened. Might be a good time to stick some money in bonds rather than sitting in cash.

[Aaron_Cornick]

I feel like going into 2020 I am focusing on growth stocks with a mote around them as warren buffet would say. My current portfolio is going to be trimmed slightly and grown. Just done a video yesterday happy with closing 2019 with £600 profit going for £2000 profit in 2020

[Ziggy]

My plans are going to try and invest in medical suppliers and elder care. In 2035 there are going to be more older people than younger in the USA, and China is going to have a similar problem when it comes to care.

[anon810895]

S&P Healthcare ETF is your friend then!

Oh and Ageing Population ETF!

[Feddie]

A few biotechs.

[Freetrade_Team]

Very interesting discussion here!

It inspired our Twitter poll, which has the UK market ahead of the US but Global in front.

Take part:

Freetrade

[SebReitz]

That shows that home bias can be very strong indeed.

[Racxie]

Curious as to your thoughts on selling Lloyds and Metro but holding onto Barclays and OneSavings?

I’ve recently started buying into Lloyds because they’ll be increasing their divs payouts to 4 times a year from 2 (the yield isn’t great but it’s a stable stock), and I’ve just made my first order for HSBC for more or less the same reason (decent yield, 4x payouts, pretty stable).

Can’t say I’ve heard of OneSavings before.

[anon810895]

OneSavings are a ‘fintech’ bank, merged with Charter Bank this year and are closing in on being a 2 billion pound lender, lots of future potential, lots of growth low overheads.

I’d keep all four if I wasn’t so heavy on banks.

[CompleteNovice (Richard Woodward)]

This is very interesting and thanks for sharing

I have been working on short listing companies that will form part of my long term portfolio (the Watchlist is particularly useful here) and intend to limit this to somewhere between 7-10 stocks in total although TBC.

Shameless plug but my current portfolio summary is on complete-novice.com