How to give your portfolio the best chance of success
Welcome to the fourth article in our series exploring how you can build a portfolio of shares by using the tools available at Stockopedia. So far we have examined why a strong underlying investment strategy is essential for any systematic investor and how that strategy can be brought to life and used to screen the market for stocks. With our concept portfolio now created we are going to look further at some of the factors that are important in managing it in the long-term.
Before we crack on, here is a quick recap on where we’ve got to during the first three articles in the series. Having taken the decision to invest directly in the stockmarket, we have looked at some of the key considerations that you should make before parting with any cash. We have also discussed why it is essential to choose an investment strategy that suits you and we have introduced a Systematic Value strategy, which is one of the approaches we like at Stockopedia. In the last article we ran through the steps needed to take all the components of that Value strategy and apply them to the market by using our tools. At the time, there were 29 stocks qualifying for the screen, which we transferred to our portfolio.
In this series:
How to get started in the stockmarket with Stockopedia
How to create your ideal investing strategy (value, growth, dividends)
How to turn a strategy into a portfolio with Stockopedia
How to give your portfolio the best chance of success
How to manage your portfolio over the longer term
At this point it is worth pointing out that the strategy, the screen and the portfolio are hypothetical examples. Yes, they are real, the metrics are all correct and the Stockopedia tools have saved us doing what would have been a near-impossible job by hand. But don’t interpret this as investment advice; it is simply an illustration of how our tools can be used. It’s essential to do your own research or if necessary seek professional advice before deciding on underlying strategies.
Dealing with your portfolio
Our Systematic Value screen combines the metrics and parameters required in Joel Greenblatt’s Magic Formula and
