19 Jan 2021
How would you invest $92k in stocks in the current climate - would you go after dividend or growth stocks?
Recently surrendered an ILP (invested for 10yrs) and received $92k. Early thirties, single, with no outstanding debts or housing loan and already have small positions in Tesla, Apple, SEA, DBS ($2-3k each). Also already DCA $500 per month in Syfe REIT+ and $500 DCA to Stashaway.
I also had an ILP which I surrendered and I put all of it into growth stocks. If I were in your position, I'll still do the same.
Below is not a recommendation. It's just what I will do. Maybe it could trigger some thoughts for you.
For me, I'm looking for outsized returns i.e. to beat the S&P500 year after year. My key direction is my money has to work harder than me, because I'm not a fantastic income earner (still working on this >_<).
My personal preference is:
1) to go by 3 tranches (e.g. if I intend to allocate $15,000 for Sea Ltd, every tranche is $5,000 lump sum for purchase of shares)
2) to concentrate on 8-10 companies, so that it's easier to keep track their progress every quarter. $92,000 can just do about there.
Do note you don't need to deploy in equal weightage. If you have more conviction in Company A over Company B, you can have a higher percentage allocated in Company A.
• Apple and DBS are relatively safer stocks but because both of them give dividends (somemore 30% withholding tax on Apple dividends) and my investment direction is growth, I will sell the both of them away and deploy the capital to growth companies.
• I also own Tesla which makes up 27% of my entire portfolio. How I increase my position is to first, observe the stock price. I don't know how to read the charts but I watch Tesla very closely.
Sometimes, it can trade sideways for quite a while, or there may be news that could cause the stock price to drop (e.g. Apple news on launching their first EV car in 2024), or the entire market just pullback (sea of red) like last Friday. These are buying opportunities.
I will then buy a few every time like 3-5 shares. Occasionally, I'll put in a larger sum.
• I also own Sea Ltd. It's not my top 3 positions but I plan to increase it.
Here's what I would buy from the US market (in no order of preference) for long-term decades holding:
Many wonderful companies out there, so what I pick for myself may not be what you'd like.
Your portfolio would be a reflection of your outlook for the future.
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Personally, if you're not close to retirement, go for growth instead. It doesn't have to be particul...
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