Stock Portfolio Review and Update 2024 | IBKR and DEGIRO Stock and ETF Portfolio Example
In this video, I discuss in detail my experiences and strategies related to building a successful equity investment portfolio through two prominent platforms: DEGIRO and Interactive Brokers. Creating a robust equity portfolio requires insight, patience and a strategic approach, especially in today's fluctuating markets.
Introduction to building a stock portfolio
First, I'll take you through my recent adventure creating a new business investment account with Interactive Brokers, a platform known for its low transaction fees and attractive savings rates. This makes it an attractive choice for both personal and business investing. In the Netherlands, the range of brokers where you can open a business account is limited, which further strengthened my choice of Interactive Brokers.
The appeal of Interactive Brokers lies not only in its fee structure, but also in the extensive tools and analysis available to investors. This helps tremendously in making informed decisions when buying stocks. I stress the importance of patience in the investment process; I don't chase quick profits, but focus on finding valuable stocks at a good price.
At DEGIRO, I recently updated my stock portfolio by selling seven stocks and adding 10 new ones. This illustrates that despite high market prices, there are still opportunities to find and buy valuable stocks. However, it requires thorough market analysis and sometimes taking calculated risks.
I also share my approach to managing my investment portfolio, emphasizing the importance of diversification and the long-term view. Equity investing is not a quick route to wealth, but a strategic approach where you invest in companies you understand and believe will generate long-term value.
In addition, I discuss the benefits of using screening tools and advanced analysis functionalities available through Interactive Brokers, such as the Portfolio Analyst. These tools provide in-depth insights beyond what many other brokers offer. It allows investors to thoroughly analyze and optimize their equity portfolio based on a wide range of financial metrics.
An interesting development at Interactive Brokers is the ability to trade commission-free in certain ETFs, which provides an added advantage for investors looking to diversify their stock portfolio without high fees. The platform also offers attractive savings rates, which is an added advantage in times when people are waiting for the right investment opportunities. Please note that there are no affiliate links for Interactive Bokers in this article. Nor do I receive any promotional money. I only mention the products I use myself, and there may be a better choice for you in terms of best investment platform. Also compare other brokers like Freedom24, eToro, Ally, Vanguard, et cetera.
Building an investment portfolio with stocks and Exchange Traded Funds
Building a successful investment portfolio in stocks requires dedication, research and a good understanding of the market. My experiences with both DEGIRO and Interactive Brokers show that choosing the right broker that fits your personal investment strategy and goals is crucial. Through smart investing, patience and strategic diversification, one can strive to achieve a robust and profitable equity portfolio.
To build a solid equity portfolio, it is essential to have a strategy that provides both short-term and long-term benefits. My approach focuses on identifying undervalued stocks with strong growth potential, and using sophisticated tools to uncover these opportunities. A well-balanced equity investment portfolio requires a mix of different sectors and geographic areas to spread risk and maximize the potential for growth.
The importance of fundamental analysis
When selecting stocks for my portfolio, I place a strong focus on fundamental analysis. This means I dive deep into the financial health of companies, looking at their profit margins, debt levels, revenue growth and other crucial indicators such as P/E ratio (price-to-earnings ratio) and ROE (return on equity). By using screening tools offered by platforms such as Interactive Brokers, I can filter for stocks that meet my criteria for financial stability and growth potential.
Diversification in investment portfolio: the key to managing risk
An important aspect of managing an investment portfolio is diversification. This involves spreading my investments across different sectors and even across borders. By investing in a wide range of industries and markets, I can reduce the risk involved in investing in stocks. My goal is to build a portfolio that includes both stable, dividend-paying companies and growth stocks with higher risk but also higher return potential.
The role of technical analysis when buying stocks
In addition to fundamental analysis, I also use technical analysis as part of my investment strategy. This helps me identify the right entry and exit points for stocks by looking at price patterns and trends. Although my focus is primarily on the long-term potential of stocks, technical analysis provides valuable insights that can help optimize short-term returns.
Technical analysis is useful, but not a must for me. It is complementary, but not a defining indicator. For me, fundamentals are much more important as a choice to invest or not to invest for a long term.
Patience and timing when building stock portfolio
One of the biggest lessons I have learned in my investment journey is the importance of patience and timing. Not every investment will yield immediate results, and market timing is often unpredictable. Therefore, I am careful to choose my moments to buy and sell, and avoid making hasty decisions based on short-term market movements. I strive to invest in companies that I believe will add long-term value to my portfolio.
Continuous learning with stock investing
The stock market is constantly changing, and successful investing requires me to continually learn and adjust my strategies as needed. This means I am constantly monitoring market trends, keeping up with financial news and re-evaluating my investment decisions in light of new information. By staying flexible and informed, I can make better decisions and manage my equity investment portfolio effectively.
What is important here is that I focus primarily on researching companies. Macroeconomic trends are less decisive for me. I mainly want to invest in stocks of the best companies in the world. Or in companies that are experiencing strong momentum in the short term, and can grow in the long term (these are ideally small cap stocks or mid cap stocks).
The transcript discusses that several transactions have taken place in the investment portfolios at DEGIRO and Interactive Brokers. The following is a summary of the listed stocks and ETFs that were bought and sold, including the reasons and considerations behind these decisions:
Stocks and ETFs purchased within my investment portfolio (2024)
- Applovin: Purchased because of its potential as a growth stock. The choice was partly based on selection criteria from a paid newsletter.
- DT Holdings, TK Tankers, Frontline: These are shipping or shipping stocks bought to take advantage of the sector's potential.
- Global Clean Energy ETF: Chosen for investing in renewable energy, seen as more favorably valued compared to traditional indices such as S&P 500 or AEX.
- Twilio: Purchased for its strong business model and potential for long-term growth, despite short-term setbacks.
- Intesa Sanpaolo: An Italian bank, purchased because of attractive valuation and offering a high dividend yield.
Stocks and ETFs sold within my investment portfolio (2024)
- Uranium ETF: Sold after a period of significant gains. The decision was driven in part by volatility in the market and the cyclical nature of uranium companies.
- Salesforce: Sold in part due to high valuation, as a strategy to take profits and reduce risk.
- Modine Manufacturing and Abercrombie & Fitch (ANF): Both sold after making significant short-term gains. This reflects a strategy of profit-taking in response to market movements.
- Celestica: Sold a portion of the shares after the stock generated significant profits, and its valuation was close to fair value. Celestica is still interesting, but I have now sold my initial deposit and thus free shares in Celestica that I want to hold for the long term.
The decisions around buying and selling stocks and ETFs are based on several considerations, such as market valuation, sector potential, and diversifying the investment portfolio. The underlying goal is to maximize returns while keeping risk manageable. Importantly, the investor does not blindly follow trends, but instead takes carefully selected opportunities that fit within a long-term wealth accumulation strategy.
Please note that this article is for inspiration only and in no way contains personal investment advice.
