Trainline (TRN, UK) @ 430p 01/10/2019
My first attempt at beginning a blog series. This, go figure, will be where I update the site with my personal stock portfolio. In time, this will come with an accompanying report on why it is that I’ve invested in that specific stock.
There are a few reasons I want to post about individual stocks that I have invested in
I want to be challenged, I want your thoughts and questions on why exactly I believe that a company is a good investment.
The main problem with personal finance, blogs, podcasts and personal finance blogs and personal finance podcasts … is that people only talk about things that have gone well for them.
If I lay out my investment strategy for a stock the day that I buy it, it can be reviewed in a few years’ time for the calamity or success that it was.
Skin in the game
A fantastic phrase (I think people use it outside of finance?) which essentially means, you are showing you are playing the same game as someone.
It will show that I am not writing about the pros and cons of the markets with all my money in a savings account or inheritance plan. I really believe in what I say about investing – hence I will tell you when I invest in a new company, tracker or asset class.
Stocks are fun
Now this is a controversial one. Investing entirely in an index tracker or your primary home is just boring.
I am absolutely NOT advocating taking investing lightly. What I am saying, is that if research a company thoroughly (tick) and believe the share price of that company will increase over time (tick) then you will enjoy the process of this happening.
This is completely ignoring the emotional and technical strategy required to see out this investment, but that is for another post.
Investing is meant to be fun… as it, hopefully, means you are both correct and increasing your personal net worth.
Much like anything worth having, if it goes wrong it is categorically less fun than the status quo. Which would be sticking all your money in a Lloyds savings account and being okay with it doing nothing. The fact you are reading this post suggests we both enjoy investing in individual stocks…
I am not currently sure how to go about writing up an explanatory post on why I have bought a stock. It is difficult to truly explain the rationale without going into some level of technical detail.
Having said that, I will do a more generic post on what fundamental drivers to look for when buying a share in a company.
As the first of this blog series, I will make a bold statement now that I don’t intend to buy stocks too often. There is a plethora of work that explains the idea of diversification theory, which I would love to write about at length, if that would interesting.
In leau of this, I probably have a long-term goal of owning 15 (ish) stocks in my personal portfolio. However, if stocks continue to pass my own personal criteria, I’ll invest!
Under no conditions am I advising you to buy any stock that I have bought, nor do I advise that you invest in individual stocks at all. This is purely commentary on my life and not financial advice.