Portfolio management

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21. Conclusion

The composition of a share portfolio says a lot about its owner. An outsider should be able to look at the holdings in it and see

• whether the owner of the shares is aiming for growth or income
• whether the owner is risk-averse or willing to take risks
• whether the owner considers himself a beginner, an intermediate or advanced investor
• whether the owner is a short term or long term investor

The point is that different types of investors, with different goals, resources and aptitudes require very different types of investments. If you've put together your portfolio rationally, it will reflect your circumstances.

The purpose of this workshop is to drive home the lesson that in creating and managing a portfolio, do so rationally. Think about your objectives and how different asset classes meet them, think about risk and how to reduce it, think about diversification and the level you are comfortable with, and think about your weaknesses and strengths and how to work within them.

Investing with a high degree of self-awareness will not only bring you the best results but also preserve your peace of mind in what can be a fraught theatre of nerves.

You have now completed the course. To test your knowledge, take the Assessment test.

1. First things first 2. Should you invest before paying off your mortgage? 3. Do you want growth or income? 4. Diversification: summary 5. Diversification: Safe custody 6. Diversification: asset allocation 7. Diversification: shares 8. Diversification: sectors 9. Diversification: countries 10. Balancing your portfolio 11. What should you hold where? 12. Tips for married couples 13. Lump sum or drip feed? 14. The role of cash 15. Rebalancing your portfolio 16. What to do with dividends 17. All about bonds 18. What to do if you inherit a portfolio 19. Benchmarking performance 20. Setting up a portfolio spreadsheet 21. Conclusion

• One Up on Wall Street