Trading 212 Growth Investing
After nearly a year of dividend investing, and over a year of investing in general. I have broadened my knowledge of the stock market in general.
Not only this, many more books have been read and general time in the market has made me start investing in growth stocks as well.
It makes sense for the modern investor. In the early capital growth stage of investing to have a portfolio that contains the following at a minimum.
Growth Stocks
Trading 212 offers a broad range of stocks to choose from and now that PIEs are fully live it makes total sense to broaden the portfolio somewhat.
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Growth investing inherently can contain more risk. Especially if you are choosing new and startup type companies.
Do plenty of in depth research if you choose to go that path.
For an easier time and a much more sensible option to open up your portfolio to growth investing I suggest looking a FAANG PIE.
As with dividend investing, blue chip growth stocks are the way to go.
Growth Investing Makes Sense While Young
How old are you? If you are in your 20s or 30s then having some growth stocks in your portfolio makes total sense.
While you are young you can absorb losses more easily and allow growth stocks to do what they do best. Grow.
Building a nest egg with a pure dividend/ETF portfolio will obviously be a slow and steady process.
Incorporating some growth stocks into your portfolio can really help with boosting you investments.
As you, and your portfolio age then growth stocks make less sense. We should be thinking about reliable dependable dividend stocks. Maybe even some bonds for the security.
The cash flow generated from dividend stocks is very nice indeed. Also, not forgetting tax-free as long as they are inside an ISA.
Personally, my aim now is to have all my growth stocks in a PIE and kind of treat them as ‘one’ stock. Such as the FAANG stocks outline below.
All of us have different aims and goals so our portfolio will always reflect that. Some may have 50% growth some may have 10%. As long as we are happy with our choices and diversification that’s all we can do.
Trading 212 FAANG Stocks
It’s almost a no brainer to invest in the FAANG stocks. That’s Facebook, Apple, Amazon, Netflix and Google if you have been living under a rock and never heard the term used before.
I also added Tesla, Dropbox, AMD, Intel, Nvidia to complete my Trading 212 Growth Investing Portfolio.
I have even called my PIE a FAANG +, and actually have AMD, Intel and Nvidia are in a separate PC Pie.
Both are set to auto-invest with monthly deposits though, you got to love the hands-off aspect of it.
Heavily Tech weighted sure, but fantastic possibilities for all.
Also, my dividend portfolio does not contain much tech either so its a nice balance I feel.
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Growth Investing in well established major players just seems like something we should all be doing.
Having access to fractional shares and PIEs means we can get into these large companies with extremely high share prices for little money, automatically with Trading 212 PIEs.
Growth Stocks Turn Into Dividend Stocks
Then it hit me, most of the Trading 212 Growth Investing stocks I have picked above will no doubt start paying dividends at some point anyway.
It may be 10 years from now it may be 2 years or not at all. Some of them will almost certainly will though.
Either way, its just icing on the cake if they do.
Long term if dividends are not being paid then I shall simply sell off all my growth stocks first. When I actually begin drawing from my Trading 212 ISA that is.
This way it allows for more compounding of the dividend stocks while I draw down the growth stocks.
Dividend investing is still the main focus no doubt. Long term my portfolio will likely look something like this 80% Dividend Stocks, 10% Growth Stocks and 10% ETFs.
Personally, bonds are not even on my horizon, who knows, that may change down the line though.
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Off course with growth stocks, there is no cash flow, unlike a dividend-paying stock.
In reality though, it makes no odds.
We can just sell off either fractional shares of said growth stocks, skimming profits off the top. The same goes for ETFs, while many pay a dividend they are normally pretty low yielding.
Certainly, an S&P500 index-tracking ETF will have a low yield. We are relying on capital growth and appreciation over time.
Portfolio Allocation
Your current age and the age at which you plan to retire will play a massive role in your portfolio allocation.
Will you include bonds? Pure dividend investing? ETFs only?
Really only you can make that decision, but a balanced portfolio with some allocation in each likely makes the most sense for most.
Finding your own balance and personal risk tolerance will come in time.
Shaping your portfolio and building solid foundations will probably take a couple of years for most of us who are adding capital each month.
Those will large amounts of capital should plan ahead more before dropping large sums of cash.
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How is your portfolio diversified? Let me know in the comments.
My Trading 212 Growth Investing PIE has just been put in the oven, lets see how long it needs to come out perfect.
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As always this is not financial advice.
Thank,
Sean C
