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5 ways to build – and maintain – a high-quality share portfolio in 2023


Looking to build a share portfolio but you’re not sure where to start? We take a look at some of the fundamentals.

Finder research suggests that around 9.5 million Australians currently own shares.

These shares are owned in a variety of different ways – in their own names, via SMSF, professionally managed funds and super funds.

But this high level of ownership doesn’t mean every Australian shareholder is seeing effective outcomes.

Although not every investor has the desire or capacity to be hands-on with managing their share portfolio day-to-day, leaving it entirely to chance isn’t ideal either.

The good news is that there are some fundamentals that can be put in place to aid the process.

👋 Hey there! As this is sponsored by Stock Doctor, we'll be using some examples from its products in this article. But always compare your options and do your research. Make sure that you also read the product disclosure statement (PDS) and target market determination (TMD) before signing up for any financial product.

1. Understand your objectives

Before you start investing, you need to have a sense of your goals.

Over time, you’ll need to decide whether you are looking to generate income returns, achieve capital growth or some combination of the two?

Of course, this is rarely the jumping-off point. Ideas like “saving for retirement” or “generating side income every month” can serve as a good basis to start.

However, you’ll need to flesh them out a bit and create more specific, measurable goals.

Seeking advice from outside professionals can help you clarify your goals. In turn, you’ll be able to make better purchasing or selling decisions to align with them.

2. Focus on quality, not quantity

The ASX presents a huge range of opportunities for investors. There are around 2000 companies listed on the ASX – but they’re not all created equal.

Accordingly, it makes sense to focus on the top stocks. So how can you spot them?

There are a variety of different analyses that can be carried out, but some signs of promising stocks include:

Consistent delivery of strong and sustainable returns
Sustainable growth in share price
Attractive (and tax-effective) dividend yields
A combination of these factors

You don’t need to be an expert on every facet of a company yourself, either. Tools like your investment platform and financial health reports can help you hone in on companies that are aligned with your investment goals.
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3. Proactively maintain your portfolio

If the stocks in your portfolio aren’t serving your needs, it’s important that you make timely decisions to right the course.
This can be tricky from a personal perspective – it’s not unusual for investors to feel a particular affinity for a given company or asset type.
However, making decisions informed by emotions rather than results can lead to poor performance for your portfolio.
It’s important to remember that divesting yourself of ineffective stocks is about investing in your long-term future.

4. Equip yourself with the right tools

A key element of setting yourself up for success as an investor is to invest in yourself.
The most obvious starting point tends to be finding the right trading platform, but there are other considerations too.
Looking for expert advice and outside insights can help you to gain additional insights and additional perspectives for your investing practices.
For example, providers like Stock Doctor can provide you with a range of tools and services to help equip you as an investor.
Access to premium research, educational materials and an investing framework – such as Stock Doctor’s 9 Golden Rules for successful investing – can offer a range of different benefits and advantages as a new or experienced investor.

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5. Look to the long term

The pop culture conception of share trading tends to focus on short-term gains. But although these gains can be exciting if they occur, serious investors will generally stress the importance of long-term investing.

This isn’t without its challenges. The ASX can be quite volatile at times, and staying your course is a matter of discipline.

Accordingly, it’s important to consistently select high-quality stocks, prune poorly performing ones and invest in the right tools to better develop your skill set.

Over a long term period, these practices can help give you an edge in your investing.

To find out more about trading stocks, make sure you check out our step-by-step guide.

Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs and forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades. Read the Product Disclosure Statement (PDS) and Target Market Determination (TMD) for the product on the provider's website.

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