Random Strategies to Build a Successful Investment Portfolio

Random Strategies to Build a Successful Investment Portfolio

It’s important to develop and build on key investment strategies in order to create a sound investment portfolio that will reduce risk and increase profits.

It’s equally important to have clarity of mind, know your tolerance for risk, and develop sound risk management strategies.

Diversification by Sectors

Invest in various sectors so that your stock portfolio won’t take a nose dive if you have everything invested in Big Tech, or say, Big Pharma.

Good sectors to invest in might include:

  1. Conglomerates.
  2. Energy
  3. Microchip Manufacturers
  4. Healthcare
  5. Technology
  6. Credit Cards
  7. E-Commerce
  8. Robotics
  9. Banks
  10. Pharmaceuticals

Diversification by Products & Services

  1. Social Media
  2. Electric Vehicles (EVs)
  3. Types of energy like Solar and Wind
  4. Online Stores
  5. Streaming Services
  6. Online Stores
  7. Cloud Services
  8. Websites like Pinterest, Etsy, eBay
  9. Computer Security
  10. Aerospace & Defense

Diversfication by Investment Vehicles

  1. Stocks
  2. Bonds
  3. Mutual Funds
  4. Index Funds
  5. Exchange Traded Funds (ETFs)
  6. Real Estate Investment Trusts (REITs)
  7. Money Market Accounts
  8. Certificates of Deposit
  9. Reat Estate & Properties
  10. Collectibles like Coins, Gold and Silver Bullion

In Summary

You definitely don’t want to put all your eggs in one basket. That is the first rule of Portfolio Management.

You’ll want to divide your portfolio up into various sectors and types of businesses.

You’ll want to be patient and research each and every stock for the best growth and momentum opportunities.

You’ll also want to keep cash ready for any buying opportunity that comes along. Being that many market corrections or crashes can’t be predicted (no one has yet come up with a crystal ball), they do occur so it’s best to be prepared.

It’s best to do nothing yet, and plan what your ideal investment portfolio will look like, and what specific goals do you have in mind.

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Portfolio Manager & Musician

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