It is remarkable that within a year, I grew my 35k investment portfolio to over 100k. The stock market was historic in 2020. We saw the market crash to it’s worse, and then within the same year, it ended at a record high. During this unprecedented time, I took advantage of the market’s downturn and invested more money into stocks, particularly growth stocks, to build my 100K investment portfolio.
- I built a 100k plus portfolio by remaining patient, calm, and understanding the businesses I picked. The first avenue I invested my money was by buying individual growth stocks. You may be asking, what is a growth stock? A growth stock is a share in a company that anticipates it will grow higher than the market average. For example, on average, the stock market returns about 8% every year; a growth stock will typically outperform the market overall. Examples of growth stock companies are Amazon, Fiver, Roku, etc.
INDIVIDUAL STOCKS
- At the peak of the pandemic in March, I purchased a variety of growth stocks. Some of the returns on those growth stocks were over 1000%. Individual stocks make up the majority (60%) of my 100k plus portfolio. Investing in individual stocks requires you to be knowledgeable about the business. One should understand how the company makes money and any competitive advantage the company may have (Click here to learn how to analyze and identify good companies). Once you know how companies work, along with their profit margins and growth rates, you can do incredibly well. If not, you can stick to investing in simple index funds, which is the other part of my 100k investment portfolio.
INDEX FUNDS & ETFs
Diversifying your investment portfolio is necessary when it comes to investing. Instead of placing all my eggs in one basket, I decided to add index funds and ETFs to my portfolio. I purchased a variety of ETFs and index funds during the peak of the pandemic. Similar to the individual stocks, many of the funds performed well.
INVESTING IN 401K PLAN
As I have mentioned several times, if your employer offers a 401k plan and a match, you should take advantage of it. It is the only place you are guaranteed a 100% return on your money before they invest in the stock market for you. Some employers may match up to 6% (varies) of your contribution. I took advantage of this offer and the match and maximized the amount I contributed with high returns. I also picked my own funds instead of the ones my employer picked on my behalf. Do yourself a favor to do this yourself. Find out from your HR person about your employer’s match. It is from your employer and part of your overall package to work at the company. So, take advantage.- Disclaimer: I am not a financial advisor. These are my own opinions and the way I invest.
Coaching Services
- If you are a beginner and are looking to learn how to invest and analyze stocks, click here to book a session. I teach how to identify good stocks to invest in and how to create a diversified portfolio. This is one of the best things you can do for yourself or someone you love to reach financial freedom.
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