Building Wealth Doc's note: I've met lots of folks over the years who don't invest because they think it's too hard. But the truth, as Dr. Steve Sjuggerud explains today, is that investing doesn't have to be hard. In fact, it can be easy as long as you have one critical tool in your belt...
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Investing can be a lot of fun...
You hear an interesting story and learn about an exciting company. It's new and thrilling. Your adrenaline starts pumping.
You do the homework, learning the ins and outs of the business. Then, after you've studied enough, you're ready to buy.
This is where the fun stops and the hard questions begin...
How many shares do you buy? Should it be a nice even number? Or should you target a certain dollar amount?
That brings us to a bigger question... What's the right percentage of your portfolio to put into this idea?
Is it risky? And if it is, should you buy more than normal, or less?
You can't move forward until you decide. So the real question to ask yourself today is: Do you have a process to determine how much of a stock you'll buy?
Maybe it goes something like this...
Well, the stock is trading for around $5 a share, and I want around $5,000 of it, so I'll buy 1,000 shares.
Or maybe it's a little more like this...
I want EXACTLY $5,000 invested in this stock, just like when I buy all my other stocks – so I'll just divide $5,000 by the current stock price. In this case, I have to buy 987 shares.
If either of these is your "process," then how did you decide on $5,000 for the position?
What makes $5,000 the "right" amount?
You have a reason, I'm sure... For example, maybe you have $100,000, and with 20 stocks in your portfolio, you divide it up equally.
That's a fine answer... But why do you divide it up equally?
Is that really the best way? Have you ever sat down and thought about this?
The point I'm making is that simply finding good investment ideas is only part of the battle. Sorting out how to correctly put them into a portfolio is a whole other thing.
So what is "right"?
This is THE important question... But it's too big a question to answer fully in a short essay. We've often covered simple tips that can help with your process – but those tips won't "pull back the curtain" to give you the thinking behind it all.
However, I talked in-depth about one of the best answers we've found during a special webinar that aired last week...
I met up with my colleagues Dr. David Eifrig and Austin Root, as well as Stansberry Research publisher Brett Aiken. We discussed a unique service we've set up to help you master this process.
It's called Stansberry Portfolio Solutions. And it's designed to help you start investing like a pro... because you'll know the exact number of shares you should buy for every recommendation.
Get this... Stocks soared last year, after plummeting in March due to the COVID-19 pandemic. But our flagship portfolio beat the S&P 500 Index for the second year in a row.
We did it by carefully selecting positions and weighting them properly. We put real thought into how to maximize gains in a safe way.
Following Portfolio Solutions means you'll maximize your opportunity... You'll allocate appropriately... You'll follow a stop-loss discipline... And you'll finally learn how to "get there" with your investments.
If you missed our live discussion, click here to watch the video now.
Good investing,
Steve