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Investment Portfolio Guide

Updated:2018-1-22 17:50:06    Source:www.tannet-group.comViews:1161

Investment portfolios, or, in plain English, collections of assets – can diminish the risk inherent in stock markets by diversification or avoiding having too many eggs in one basket. There are six things you should seriously consider doing if you want to build a successful investment portfolio. The specifics of how you implement each concept will differ based upon your own personal situation, so it is important that you seek the advice of a qualified tax professional and investment advisor.

Objective and Purpose of the Investment Portfolio
Why do you want to invest? Perhaps the reason is to support a faith-based effort or some other philanthropic interest. It could be to launch a new career, or your own business. You need to know what you expect of your money. Otherwise, you are going to be like a rudderless ship at sea; no direction, no purpose. With a clear goal, there will be a specific positioning.

Keep Investment Turnover to a Minimum
As the saying goes, don't rent stocks, buy businesses. Turnover has been shown to correlate with poor investment performance. If you aren't willing to own a business for at least five years, don't even consider buying shares unless you fully understand, and accept, that the short-term stock market is irrational, volatile, and capricious. You should want to hold things that grow more valuable over time, producing higher earnings per share and fatter dividend checks.

Never Overpay for an Asset
There is no getting around it: Price is paramount to the returns you ultimately earn on your investment portfolio. You cannot buy a stock at an earnings yield that is a fraction of the Treasury bond yield and expect to do well unless it is a turnaround situation that actually turns around, or a start-up with a very high rate of growth. 

Invest with a Plan
The most successful portfolios are not thrown together haphazardly. They are assembled based on a solid understanding of the fundamentals of the individual securities that comprise the portfolio. A solid portfolio is diversified not just across investment vehicles and exchanges, but also with an eye toward sectors and/or geographic regions that are expected to perform well. The portfolio should also factor risk tolerance into the balancing discussion.

Quality Not Quantity
Structuring a portfolio that delivers solid, long-term results means that the underlying fundamentals of your holdings are critically important. While the latest IPO-of-the-moment may appear to offer an exceptional return in the short term, an offering that isn’t supported by strong fundamentals may actually stumble out of the gate.

Contact Us
If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020, Dongmen Rd South, Luohu, Shenzhen, China.

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