Over the last couple of years we've had thousands of investors start to use the toolkit at Stockopedia and there's been a common thread to many of the queries that we receive. In summary they all boil down to... "How do I manage my portfolio?"
This question comes in many different forms, from how often one should rebalance; to when should you sell; to how to account for splits and dividends. So in order to answer all these questions at once we've decided to go into blogathon mode here. Over the next couple of months we'll be blogging towards the publication of an eBook on portfolio management, which in turn will eventually become a coursework on the website.
Just some of the topics we'll be covering include :
- Portfolio Size - how the size of your portfolio impacts everything
- Portfolio Costs - how to minimise transaction costs, tax and everything else
- Portfolio Breadth - How many stocks should you own?
- Portfolio Diversification - Should you invest across sectors and geographies?
- Factor Diversification - Should you invest across different drivers (QVM etc)?
- Rebalancing - how often should you rebalance a portfolio?
- Correlation - How can you buy uncorrelated securities to reduce risk?
- Buying strategies - Should you average down or pyramid up?
- Selling strategies - Should you use stop losses or time based selling?
We will not be focusing on any other asset class than stocks - we are Stockopedia after all and this will all be about creating the best possible equity portfolio strategy not how to balance across bonds, real estate and all the rest.
I anticipate that this process will also lead to a complete revamp of the portfolio analysis tools on the site. A personal goal is to develop the portfolio tools to solve my own problem... in such a way that I won't have to get my calculator out every time I want to calculate the number of shares I want to buy or sell of a particular stock. Frankly I want to be able to align portfolios with systematic strategies and print off a deal sheet every time a rebalance is due.
Anyway - that's all for the future... what I wanted to ask now is for the community to throw some ideas and links on this page as comments to help us in this process. If you have any great links to books, tools, or resources you use on the web - please do post…
