In the financial sector an investment portfolio is a collection or basket of weighted set of assets. The holder has a finite amount of cash and wishes to optimise the profit of this portfolio.
How do you create a portfolio?
- Have money to invest in something
- A broker that can execute on your behalf this can be an online broker or one where you need to call to place orders
- Open an account
- Analyse and allocate percentage of your money to the shares you want to buy
Yahoo is a very good tool for building dummy portfolios. This does not send your trades to the broker. Below is a dummy portfolio to illustrate a portfolio construction.
How you select the stocks to put into your portfolio is a whole new discussion.
Suppose I had $14,000 in 2019, I decided to buy some stock. Having done some analysis I allocate a proportion of my capital to purchasing the stocks. Below is my percentage allocation and the date of purchase.
|Stock||Trade Date||Purchase Price||Quantity||Commission||Total Cost/share||Portfolio %|
As of today this dummy portfolio will be worth just over $22,000 a rise year on year of 65%.
Note: For the purpose of this exercise all the stocks are in the US stock market and are denominated in dollars. There are no other asset type.
THE ARTICLES WRITTEN ON THIS SITE DOES NOT GIVE INVESTMENT ADVICE AND ANY OPINIONS EXPRESSED OR DISCUSSIONS THAT TAKE PLACE HERE CANNOT BE DEEMED TO BE INVESTMENT ADVICE.