Building Your Portfolio

Once you have your buy list prepared, it’s time to start building your portfolio.

If you already have stocks that you bought before QAV, and they are in profit, you might want to hold on to them until they breach one of the QAV selling conditions.

If you are starting fresh, you’ll need a brokerage account. Tony has always used a full service broker, which is relatively expensive but comes with added benefits.

Most QAVVERS use an online brokerage account. The common ones I hear about are SelfWealth and CommSec. I use SelfWealth myself at the moment. They charge about $10 per trade.

Tony recommends holding about 15-20 stocks in your portfolio.

He also recommends your portfolio should be evenly split across those stocks. So work out how much you have to invest and divide it by 20. Then buy that dollar amount of each stock.

For example, if you have $100,000 to invest, you would buy $5000 per stock.

If you don’t have a large pile of cash lying around to invest, and intend to save up bit by bit and then invest it, you might want work out how much you think you will invest over the course of the first year, and then divide *that* amount by 20. Then, as you get 1/20th of the total amount saved up, by one stock with it. Then repeat.

When you buy a stock, don’t forget to set up an alert for it in Stock Doctor so you know when to sell. You actually want to set up TWO alerts – a Rule #1 alert (ie to alert you if the stock drops to 10% less than what you paid for it) and a 3PTL alert (ie the current sell price). The 3PTL will change from month-to-month, so set a reminder for yourself to reset that alert to the new sell price on the first of every month.

And that’s it. Congratulations! You have a stock portfolio.

Now… forget it exists and go out and live your life.

Rule #1 is “Never lose money.” Rule #2 is “Don’t drive yourself crazy by checking your portfolio every five minutes.”