Description
Book SynopsisEffective share portfolios for the private investor
Running an efficient portfolio of shares means buying and selling the shares that make the most sense for you, and at the right time and price. Rodney Hobson, author of the bestselling Shares Made Simple, sets out how to do this without having to be a financial expert or full-time trader. Using plain language, he takes the reader simply and logically through the process, giving helpful examples and real-life case studies at every turn.
In How to Build a Share Portfolio you can:
- find out how to determine the right objectives for your portfolio
- learn how to pick shares that fulfill your investment ambitions, and when to drop those that no longer do so
- understand how best to set your portfolio''s size and ensure it is diversified against risk
- discover the best ways of monitoring your portfolio, and of reducing losses and rebalancing it when necessary.
Anyone who is thinking of investing, however much or however little, will benefit from the information, advice and guidance contained in this book. Similarly, those who already have a portfolio will find it helps them to stand back and reassess whether they are making the most of their money and whether their portfolio is meeting their needs.
Table of ContentsPreface Introduction Part I - The Choice of Assets 1. The Range of Assets What is a portfolio? Shares Cash Gold Gilts Company bonds Property Works of art Collectibles Funds Exchange Traded Funds Summary comparison of assets Costs Mix and match Why build a properly constructed portfolio? Lessons learnt 2. The Attractions of Equities Performance Diversification Foreign stocks Lessons learnt Part II - Building a Portfolio 3. Basic Decisions Investing for income Investing for growth How many? Pounds, not numbers Sectors Weightings Over and under weight Lessons learnt 4. Top Down and Bottom Up Top down Bottom up Best of both worlds 5. Fundamentals What to look for Company analysis Lessons learnt 6. Choosing Between Cyclicals and Defensives Timing issues Visibility of earnings Cyclicals Defensives Lessons learnt 7. Investing for Dividends Where to look for dividends Dividend cuts High payers Dividends in dollars Lessons learnt 8. Investing for Capital Growth Growth companies Value investing Case Study: Dogs of the Dow Lessons learnt 9. When to Invest Bull or bear market Volatile markets Buying opportunities Pound cost averaging Lessons learnt 10. New Issues Taken on merit Pricing Book building Lessons learnt 11. When Share Prices Fall Catching falling knives Profit warnings Lessons learnt Part III - Managing Your Portfolio 12. Monitoring Your Portfolio How often to monitor Measuring performance Benefits of monitoring 13. Stop Losses and Averaging Down Stop losses Averaging down Lessons learnt 14. Adding to Existing Holdings 177 Changes in circumstances 178 Lessons learnt 180 15. Selling Existing Holdings Keeping calm Tracking news announcements Taking some profits Lessons learnt 16. Rights Issues and Placings Right issues Grandiose schemes Rights issues at or near the market price Placings and open offers Special dividends and share buybacks Lessons learnt 17. Takeovers and Demergers Takeovers Demergers Lessons learnt 18. Costs and Taxes Costs Taxes 19. An Example Portfolio Shares bought Portfolio valuation (at start) Dividends received Issues faced Lessons learnt Index
