Stockopedia’s Folios tool allows for fast, in-depth analysis of a group of stocks - either ones you already own, or a watchlist of stocks you’re thinking of buying.
The Folio tool has been designed to help you avoid three of the most common risks when building and managing a portfolio of stocks:
1) Overconfident position sizing
Keep in mind that stocks which carry a heavier weighting in your portfolio, will also have an outsized impact on your portfolio returns. Does your conviction in this position match with its size? In other words, are you convinced that a stock on which you are overweight will help drive the returns of your portfolio?
2) Owning only speculative stocks
Diversification across different styles of investing matters. You might not be aware that your portfolio is made up of predominately speculative bets which are all at the risk of massive underperformance.
3) A lack of sector diversity
Portfolio diversification is a subject that divides opinion, and it’s one that most investors approach by thinking in terms of numbers. It ends up being a balancing act between offsetting the risk of single failures against the costs and effort of managing dozens of positions.
You can find out more about all three of these risks in our brand new guide on portfolio analysis. Follow this link to our Academy to read it.
25 Folios for everyone
We’ve heard for a long time that our community would like more than 10 Folios - for creating watchlists, testing strategies, tracking your family’s investments, and more. Thanks to the infrastructure improvements that we have made recently, we are now in a position to expand everyone’s Folio limit.
Regardless of your plan, you can now create up to 25 Folios (up from 10 previously).
You do not need to do anything in order to benefit from this, all changes have already been reflected on your account.
In order to make the most of these additional Folios, we have also put together two new guides in the Academy to help with your portfolio management.
1) Monitoring your potential investments with watchlists
Watchlists are a useful tool to help you keep track of your investment ideas and ensure a healthy, growing portfolio. In this article series we’ve shown how you can use our watchlist tool to help keep your focus and also to improve diversification efforts in different geographies.
