Advice on portfolio
I’ve lost my way lately after a good start. Without disclosing my balance, my big holds currently are (approx)
Cristiano R - 15%
Lucas Torreira - 15%
Harry Kane - 13%
Luciano Vietto - 9%
Nemanja Redonjic - 9%
Messi - 6%
Sofiane Alakouche (recent IPO) - 6%
Granit Xhaka - 4%
Isaac Success - 4%
Any thoughts on potential changes? The only significant changes are Torreira who has raised 6.8% since I bought him and Redonjic who has gone down 4% but I think is underpriced. Success has gone up 32% but sadly I think that ship has sailed and I didn’t take full advantage! Probably only boosted my overall balance by 1% ish haha.
@NewUser36672 I had a good lot of months doing well but recently my portfolio has not gone up much at all. On 8/8/2018 my portfolio was £18,300. Now it is £18,200 haha. I hold younger players and they are taking a hit because people are buying for MB and PB currently. Don't worry about it. I'm not yet.
@HappyLarry59855 does that look like a decent balance then? Generally look to hold longer term?
All rather depends on what you want to achieve; having only 9 players accounting for over 80% of you portfolio will be great when 1 hits a MB/PB dividend or has a good price rise due to speculation or performance etc but you also have 2500 players working against you, which I would suggest is not great odds. Whilst it's true the vast majority of them haven't a cat in hell's chance of hitting a dividend but you are also missing out on hundreds of arguably better value players by having such a concentrated portfolio.
What happens if Kane, Ronnie, Torriera has a career ending injury? You have written off a huge chunk of your capital which would take months to recover, no matter how well the rest did - high risk & high reward but each to there own; personally I wouldn't have any player accounting for more than 5% of my portfolio & that I would class as high risk!
Long term I think 2% would be a target maximum value for any player, so any write off would cause minimal damage. So a minimum portfolio size would be 50 players but more likely 80 -100 to achieve a decent risk spread.
@NewUser159387 sounds like you have a lot more £££ available to invest than me haha.
@NewUser159387 seriously though with such a thinly spread portfolio, doesn’t that mean that any dividends are of negligible value to you?
@NewUser36672 I look to hold longer term. My balance as I mentioned has stagnated which doesn't feel good, however I will hold on because I have faith in who I hold. My bigger holds are Kenedy, Sergio Gomez, Isak, Zivkovic, Adli, Weah, Alena, Mboula, M. Lopez, Sarr, Leao, Maximin, Ndidi, Geubells, F. Ruiz, Barella, Mount and NDombele. They are all young players and so aren't being bought whilst people go for MB and PB. Are they awful to hold? Or are they the future golden generation? I really do not know. Only time will tell, but I shall stick with them, though my portfolio isn't in good shape because of them.
Im in the red
The £££ size of your portfolio is irrelevant the diverse risk principle works whether you invest £100 or £1million. If you write off 15% it hurts just as much to either. Dividends work the same way; whilst a concentrated portfolio will benefit more by % gain from a win, a diverse portfolio will benefit from more chances of a win.
I hold Suarez @221 & he hit an 18p dividend last weekend & rose by 50p+ obviously if I only held him that would have a massive overall effect but as he is only 1% of my portfolio the effect was much less but until he hit again a single holding would most likely stagnate whereas a diverse portfolio has many more chances to have similar hits from other players.
There is no right or wrong way to make money just higher & lower risk strategies which are down to personal choice.
Quick update and renewed request for advice:
C Ron 12.5%
Nicolas Pepe 8% (linked with arsenal iirc)
Messi 5% (looking to add to this soon but don’t have any liquidity rn)