How To Build an Investing Portfolio For Beginners in 2024

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[@ChrisShawUK]

The thing I would add for new starters is to be very clear why you are investing. I started in 1998, aged 30 and my goal was to stop work aged 60. I wanted to invest in a way that would double in real terms over 30 years. If you don't know why you're investing, you will likely fail. Also, if your goal is something like "to maximise return", you will also likely fail. If you spend time on a strategy before you buy anything, you'll find the whole process a lot less stressful and confusing.

[@adrianl5899]

Completely agree with all of that. I suppose it's akin to other things in life that really need us to focus on a goal and plan the steps to get to the goal (education, career progression etc.).

[@TobyNewbatt]

Pinning this for all to see Chris!! Wise words from someone who has been there and is currently doing it!

[@ChrisShawUK]

@@adrianl5899 yes, and in general people are quite good at sketching out the rough steps needed to achieve things in other aspects of their life. But when it comes to investing, I think a lot of people just want to "make money" ... Whatever that means ...

[@ChrisShawUK]

@@TobyNewbatt ha, thanks Toby.

[@MissLolaElle]

@@ChrisShawUK How are you coming along in terms of reaching your goal? Did things go as planned?

[@StonksLifestyle]

I think a good tag line to help new investors understand the true goal of investing “You don’t invest to get rich. You invest to stop being poor” it’s not about reaching as high up on the money ladder as possible, but doing what you (reasonably) can to raise the wealth floor so your worries become increasingly trivial instead of do or die survival decisions. If you focus on building your base and maintaining your goals, you’ll end up being richer than you expected.

[@jimcraiggeezer]

Wise words.

[@shemekafavors3581]

Thank you. That's a good perspective. I will keep this in mind.

[@clarencemacaroni7721]

That deserves a screen shot man 👍

[@adrianl5899]

The section on emotions is super-important, well done. How many people watching have experienced a 50% crash? You'll only know how you react when it happens, not while we've been in a general period when it's been hard to do badly and just thinking 'I won't react'. Although the instant access we have to almost all our investments nowadays allows for transparency and interest, it does allow for over-tinkering, emotional reactions, trying to time markets etc. Much of that was avoided in the days of annual statements! And we know that missing specific good days in the past, because of selling out in panic, ultimately led to a very different (worse) outcome than if staying invested. Hence, I always view it as I invest only to meet my goals (which are specific) and do so at the least risk possible. I accept I could potentially make more by taking on more risk. But I only want to achieve my goals, not other people's. And that's what works for me.

[@capcomgenius3974]

I've been in a company (SOU) when it hit £1ps and then tanked to next to nothing. Luckily I knew someone that told me to get out at around 80p ps. But still felt sick watching my money go down. Some people I knew could have been extremely rich if they had sold at £1 ps. This is why i'm going for safer companies now rather than the volatile ones

[@capcomgenius3974]

I've recently got back into Stocks and Shares (index funds) after buying a House and having a family. All of my old decisions were mostly AIM shares which were highly volatile and risky. I made a lot and lost a lot on different companies. After watching numerous KZbin channels (including this one) and reading the books recommended I am only investing in S&P and Global All Cap now as these seem a lot safer bets. I may start getting back into individual companies but haven't fully decided which ones yet. I like the look of the the big American Companies for long term though.

[@Xaviercommentsection]

apple 5% lenovo 5% amzn 15% aph 20% prysmian 20% tsmc 20% berkshire hashway 15% intc 5% ye ik this is 105 % but im going to try to refine it let me know what u think :) 1.3k capital ( im 13 so no property crypto sucks and bonds r boring)

[@lxmpck]

As a fellow mid-30s UK guy taking his first steps into investing, I can confirm, this was very useful! 👍

[@TobyNewbatt]

@@lxmpck thanks and good luck 🤞

[@tomkane4243]

Great video, Toby. I've been investing since May 2021 and you've made the process of a complicated stock market easier to understand with your channel. My portfolio on Trading 212 consists of index funds and a few individual stocks. As you've mentioned, it's all about the individual and taking ownership of their own finances and how much they're personally able to invest in the market each month. Thank you again for taking the time to make these videos as I find them very useful and helpful throughout my investment journey.

[@533nav]

Once again nice video Toby. Can you please make a video about lump-sum investing if someone has inherited or got some extra cash??

[@TobyNewbatt]

Thanks for the suggestion Nav

[@stevegeek]

Good suggestion. I recently retired and have a lump sum of cash within my SIPP to invest...I know we should look at "time in the market, not timing the market", but as someone who has retired, and with stock market at all time high (S&P 500 anyway) I'm very hesitant to go all-in on index funds.

[@nikkimacaraig1142]

You are so in-depth! New subscriber here!

[@TobyNewbatt]

Thanks and welcome

[@87vortex87]

Video paused at 10 seconds, so I can comment and check after the video what the differences are 😉 my strategy: 60/70% in broad spread ETF such as SP500 and MSCI, then 20/30% in smaller ETFs such as EM, REIT or dividends. Then 0/10% in individual stocks with a maximum of 15 individual stocks. Play video!

[@TobyNewbatt]

We are pretty close! Enjoy the rest of the vid

[@87vortex87]

​@TobyNewbatt I'm 36, so we're about the same age I guess, makes sense the strategy is about the same indeed.

[@adrianl5899]

May be misunderstanding, but the gilt's coupon pays yearly (split across 2 payments) across its lifetime, while the nominal value is paid at maturity.

[@TobyNewbatt]

Yes you are right here my apologies!

[@nasirhussain8832]

Very clear and simple. Thank you very much.

[@duffinvests]

Thanks for sharing this video I personally took a lot of value from it. Good to see the breakdown of your portfolio and the reasoning behind each type of investment.

[@roberthem5216]

Best investment-youtuber by far ❤️

[@richardclayton6939]

I’d be interested to see your individual stocks you picked and the returns for this year. I too mainly invest in index funds but like a little tinker with about 10% stocks, just a possible video idea

[@hustlinhitch]

My portfolio is currently 90% VWRL, 5% CSH2, 5% IITU. I'm 52 soon. If only I'd started sooner!

[@adrianl5899]

You're definitely not alone in wishing you had started earlier. At least we started though, that's some comfort!

[@richardwall2330]

Yet again great video Toby thank you for your efforts Very true the things you say and have said in other videos about psychology Not letting ones ego ruin your investment choices timeliness " or ejection point " Keep the great work coming as I look forward to your wise utterances

[@DaveB-r7u]

Hi, Toby another great video, I am pleased you mentioned the human part as it is so difficult sometimes as you say. You mentioned that a retirement portfolio would be different from this discussion, however could you consider doing a retirement video soon please as I am 63 and just stopped working. It would be good if you could pretend you were going to retire and what you would do with your portfolio today. I understand it would not be a good thing to predict what would happen in the future when you retire but you’re very good on advice and could help me know. 👍🍺🍺

[@edzeppelin933]

Nice video Toby, thanks! Not sure if youve done one already, but I'd like to see a video on the difference between biying straight bonds and investing in a bonds etf.

[@petefrancisful]

Hey Toby. Could you make a video focusing on investing in Crypto which only makes up a small percentage of a total portfolio. KZbin is full of videos for people who want to go “all in”, but similar to yourself, I would just like to have say 5% bitcoin as part of my total pot. Wallet options etc

[@TobyNewbatt]

Thanks might be a nice suggestion

[@mgfoster82]

What are your thoughts on Plum, and using the separate pockets for Savings accounts, and investing in the Portfolios on there, as well as picking individual Funds i.e. Global Tech/Global Health/Global Gold etc or even picking the individual Stocks.

[@4justmyopinion]

This is good information. Thank you for sharing.

[@herewego..]

Hi Toby, I have few investing questions regarding the broker, see if you can help me 😅😅 1) Is it normal for my fractional shares held by the broker as a custodian through a sub custodian or nominee when the broker acts on principal capacity? Any associated risks? 2) Fractional transactions entered into by the client with Moo Moo Singapore (my online broker) could result in a loss to the client and a gain to the Moo Moo Singapore. How would you interpret this term? Any associated risks? Thanks in advance..

[@declanmcardle]

As Murray Walker used to say: "Anything can happen in -Formula One- investing, and it usually does".

[@malcolmbirkett1347]

I hold 2 investment trusts and 15 companies in my isa . One of the companies SMDS is on the up today 😊.

[@DrGMtrx]

Hi Toby, Would you mind sharing your list of individual stocks please? Thanks

[@ThatInvestingChannel]

Great video mate and I agree with the value of index fund investing but I must say I love selecting individual companies and jumping into their balance sheets and earnings calls to see the possible future value of a company. People that invested in Apple 5 years ago would be up over 345% I would say that this wasn’t that much of a gamble. But for a hands off and stress free approach that will produce great returns index funds are the way to go! Everyone is trying to beat the market after all👍

[@TobyNewbatt]

I also have some fun with stocks on the side. But I also own all of them with an index fund. If Apple goes up…so do I 👍 While we can all invest in hindsight and win across a few years. We know that the vast majority can’t do this over the long term. Financial statements can’t tell us the future unfortunately as much as we’d love them to 😎

[@stephenrourke5404]

Great video as usual - would love to see a video on where would you invest your money if you were fortunate enough not to pay any income tax, like working abroad or offshore…

[@TobyNewbatt]

Great suggestion!

[@seanb-ol3up]

I'm just about to start my investment journey I'm taking 10k from dividends which I should have in march and going to put it into vangaurd ftse global all cap accumulation, I was looking at it in October it 175 now its 197 😮 if I had the cash at hand then I would of been loving it but now it's making me slightly reluctant as I keep hearing about a market crash and don't want to put my cash in on the high end

[@TobyNewbatt]

Nobody knows what the short term price moves are going to be for the market. I dont try and guess I just keep investing. if you cant invest then you can always average in over a few weeks or months. but this is also guessing :)

[@dar4171]

Good Video again Toby, thanks. 👍🏻

[@danilocampolo4498]

Hi Toby, thanks as always. Would you do a video on individual factors/ multifactor (size, value, quality, momentum) etfs? As there are few KZbinrs I follow that are starting talking about this as a way to potentially outperform our bog(le) standard market cap weight global/s&p 500.

[@TobyNewbatt]

Thank you this is a good suggestion and an area I am quite interested in!

[@massive_crypto7126]

Great video, thank you mate !

[@roblowry9457]

Another good video. So do you use 6% when you are running future projections for global index funds for the long term?

[@TobyNewbatt]

I use 6% as this is the long term returns of stocks (200 years worth) ABOVE the rate of inflation so you can get a real amount of money not just a nominal one. I have no idea what the future holds, but in the very long term I still expect socks to outpace inflation.

[@adrianl5899]

Any man receiving a Blackberry from his wife before 2007 was in a loving relationship. Post-2007 and it had all the hallmarks of ' soon sleeping on the sofa forever more'. I imagine, obviously.

[@TobyNewbatt]

Hahaha brilliant 😂😂😂

[@Dwbron]

Would you recommend a stocks and shares LISA over a standard stocks and share ISA, given the extra bonus when you turn 60?

[@lja8187]

Good video. Easy to understand. The word is Vanguard are trialing an app aren't they finally in the UK?

[@TobyNewbatt]

I heard possibly that it’s coming but I wouldn’t hold my breath on it being too flashy! 😂

[@valerienewbatt9678]

Very good video as always. So informative Toby

[@TobyNewbatt]

Thanks 👍

[@alwayslearning7672]

So could I instead of putting in £300 per month for 30 years, could I just put in 108k in one lump sum now and come back in 30 years for the nest egg?

[@colinrobinson4327]

Great vid as usual! So what stocks do you have in that 20 percent🤔 👍

[@TobyNewbatt]

Nothing crazy, mostly large cap tech that I purchased close to the bottom of the market. Nothing stupid or degenerate :P

[@KeldorTheWhite]

Great video as always. Who do you use for your Crypto and do you bother with a wallet or leave it on the exchange? Thanks

[@TobyNewbatt]

I hold mine on ledger so it’s on a hardware wallet 👍

[@Zero-Investing]

Cash savings is 5%+, so their is no point in bonds anymore. Regular savers are 7-8%, too.

[@stevegeek]

It depends on the platform...I'm with interactive investor and they only pay around 3% on cash, so I have some UK Gilts paying 6% in my SIPP (I recently retired so I'm not all-in on stocks! 😆).

[@lja8187]

Good video as always, quick question Toby. I'm new to Vanguard, I've set up a General Account and the ISA, haven't used the £20K tax free, so is there no reason at all I'd bother with the General Account? Won't be near 20K for years anyhow. Just use the ISA?

[@lja8187]

​@@LegendZzFTWthat's great thank you.

[@jonathangiles4854]

5% on crypto for me too. Bit of a play thing, and hopefully one of my coins explodes

[@philgosling]

Bonds fell 20-40 % just the past year or 2 so they were very high risk and will take years to recover. The old adage of 60-40% stocks and bonds - failed miserably and for those retiring well they'll never recover.

[@larsenb4803]

Yes, the 2022 bond crash was awful. People close to retirement, say in Vanguard Lifestrategy, were told to play safe and hold mainly bonds, and got absolutely mullered.

[@NM-hq1io]

Hey Toby, I’m about to open up a vanguard account & pretty much just want to invest my money, let it sit & not have to worry about what stocks to buy -> would you recommend opting in for the ISA managed account by them, where they handle the investments rather than myself?

[@adrianl5899]

You are probably aware that you can run your own ISA at Vanguard cheaper, using, I assume, the investment options used in their managed service? However, if you are put off by trying to do things yourself then at least using such an option gets you going and investing. I began my investing years ago into a managed find until I was more confident doing things myself. That said, if you take their risk assessment and come out as 'very adventurous' then they'll put you 100% in global equities. I would definitely question using their managed service for 100% equities given a simple global equity fund and platform fee is nowhere near the 0.6% you would pay for them under the managing option. Of these 'this matches your general investor profile' funds, I personally think HSBC's Global Strategy funds are a good option, although they are obviously not available at Vanguard's platform.

[@NM-hq1io]

@@LegendZzFTWthanks mate, Chris actually said similar to you! Have gone ahead & opened an account, will handle myself - appreciate the insight mate!!

[@philgosling]

Everyone needs a home to live in ! So most try and buy one?

[@Norfolkpaul]

Nice work on this video 😊

[@TobyNewbatt]

Thanks 😁

[@travburton3075]

beginer, thanks.

[@MSundirarasu]

Sorry, what index funds to choose exactly?

[@TobyNewbatt]

I specifically did not talk about individual funds. I have lots of other videos which cover that.

[@mazzgoldie9149]

S@P 500 index fund like VUSA or a global index fund like VWRL?

[@jonathancook3932]

Where did you get the data for each sectors performance by year? I would love to look at that in more detail.

[@TobyNewbatt]

www.blackrock.com/corporate/insights/blackrock-investment-institute/interactive-charts/return-map if that's what you mean the link is above? This is a Blackrock heatmap that gets updated each year

[@jonathancook3932]

@@TobyNewbatt thats exactly it. Very helpful. Thanks

[@POILY2501]

How about bond¿do you have any %?

[@lja8187]

Hi Toby quick question. General one. If i own the FTSE Global All Cap Index Fund and the S&P 500 am i just duplicating my investment in the bigger companies in the USA?

[@TobyNewbatt]

Yes 😎. Basically you are overweight US. Whether that is good or bad is anyone’s guess in the future. But yes you are doubling up above market cap weights.

[@lja8187]

Thanks ​@@TobyNewbatt

[@_J4CK4L_]

You seem like a good lad

[@Greg.Newton13]

I’ve got 10k just sitting in a current account … what would you do with it right now?

[@TobyNewbatt]

Presuming you don't need the cash I'd at least have it earning me money in the short term. Places like Trading 212 have 5% on cash right now, or you can use any money market fund to give you a similar amount of interest.

[@Lovemy911]

Aah ....the voice of reason 😁👍

[@TobyNewbatt]

I does my bestest!

[@Casualclips17]

where do I buy bonds, do I just buy a bond etf and is there a downside to a bond etf?

[@stevegeek]

Most platforms sell bonds, both government and company, individual or funds. I use interactive investor and own UK gov bonds (gilts) with different maturities / interest rates. Bond ETFs or funds don't have maturity dates like individual bonds, so you don't have a guaranteed return at the end.

[@__Rum-Ham__]

I’m probably your most boring viewer but I think 100% Vanguard global all cap is all you need 👊🏼 #indexandchill

[@TobyNewbatt]

I’m going to copyright index and chill one day 😎

[@Me-ll4ig]

Great video

[@TobyNewbatt]

Glad you enjoyed it

[@gusleonard9397]

Do you know of any bond funds that track and get the yield of government bonds I can buy?

[@TobyNewbatt]

Theres a tonne, Vanguard have one you can have a look at: Global Aggregate Bond UCITS ETF

[@adrianl5899]

It will depend on whether you're using a limited offer platform (like Vanguard) or a whole of market platform as to what government bond funds are available to you. There are global ones, like Toby's mention, and country specific (gilt funds for UK, for example). Some are specific maturity (0-5 years, over 15 years, for examples) and some are aggregate covering a whole range of maturities. Some are nominal only, some are index-linked. I would suggest just being aware that there's a big difference between buying individual bonds and gilts with a specific maturity date, as in the illustration in this video, and buying a bond fund/ETF containing many different maturity dates. Many people got caught out the other year by being in passive bond funds/ETFs, unaware of the make-up on bond maturities in the fund they invested in. (And this would have been applicable to any passive Target Retirement, LifeStrategy type funds with bond elements too). Many passive aggregate fund portfolios are going to contain very long-dated gilts/bonds by default. Some people were oblivious to the potential impact of rate rises and the 'resolving' of QE on long-dated gilts/bonds, which came to an abrupt head after the Kwarteng/Truss debacle. They suffered utter chaos in an area of investing they would have thought very safe. This is not to suggest passive bond funds are right or wrong for you, but that it is important to do some reading about bonds and gilts because they are different beasts to the kind of passive equity investing many people are engaging with. And since we use bonds to diversify and add what should be 'safer' elements to our portfolio, knowing the risks of them and choosing appropriately for your situation is a worthwhile bit of research, I would suggest to everyone.

[@chiport10prprecious74]

Toby l do understand that you are not a financial adviser but can l ask if it is alright to create a pie chart on the trading two one two and invest into your pie making it to autoinvest?

[@TobyNewbatt]

Yes that’s the way to create an automatic investment on T212. You create a pie, and set up your investments on a schedule you like. Hope that was the question?

[@TheShad0wMan85]

@@TobyNewbatt he wants you to create it and share with him ...

[@Matty08Tar]

Thoughts on this please in February 2024 From- 20,100 total S&P 500 60% = 12,060 NASDAQ 100 10% = 2010 MSCI world 10% = 2010 Japanese Equities 8% = 1608 Baron Oil 7% = 1407 US semiconductors 5% = 1005 From - 75,000 total S&P 500 65% = 48750 NASDAQ 100 15% = 11250 MSCI world 10% = 7500 Japanese Equities 10% = 7500

[@TobyNewbatt]

Hey if it works for you, that's all good. I read that as a US heavy/ Tech heavy portfolio with a bit of wider diversification. There's no way to know if this performs better or worse than a single investment in a global index fund but I think you'll do just fine either way. As usual, you just got to stick with it either way for the super long term :)

[@Matty08Tar]

@@TobyNewbatt how about this instead :) 20,100 total S&P 500 50% = 10,000 Japan Equity 15% = 3000 NASDAQ 100 15% = 3115 Artificial intelligence 10% = 2000 Baron Oil 7.5% = 1500 US semiconductors 2.5% = 500 75,000 S&P 500 50% = 37,500 Japan Equity 20% = 15,000 NASDAQ 100 20% = 15,225 Artificial intelligence 5% = 3750 US semiconductors 5% = 3750

[@declanmcardle]

Land might be good. I hear they're not making any more of it...

[@TobyNewbatt]

Unless we're in the Metaverse :P

[@heycross]

Would really like some more information when ISAs are brought into the discussion.

[@TobyNewbatt]

I discuss them in huge detail in lots of my videos and I’ll be doing lots more as we approach the new FY 😎

[@sydport9036]

Index funds are just too boring, and buying Apple , msft and goog now. Bad advice.

[@JoeLisle]

I have got those 3 stocks in my portfolio also Amazon is doing great for me as well

[@sydport9036]

@@JoeLisle Be sure to buy more Nvidia 🙂

[@seniorzhang9114]

wow, you don't invest in fixed income bonds. Brave

[@TobyNewbatt]

Not for me personally :) - as a long term investor bonds will significantly underperform stocks. Yes, they might help smooth out volatility but they are also just as liable to go down too. See 2022 when bonds also had their worst ever year.

[@TheBigShort11]

and i would also support the decision of banning ETFs.

[@TheShad0wMan85]

Why?

[@TobyNewbatt]

Presume you are referring to all the active ones and not the passive ones? Very different beasts out there.

[@TheBigShort11]

Only the passive ones which inflate large cap stocks, active ETFs are like active fonds, just cheaper. Those are ok because of price discovery

[@aturan-fo1qt]

Bitcoin still feels like gambling to me. Its world is a bit dark. That's why some people prefer it to move money, to avoid taxes, to hide from governments, etc.

[@TobyNewbatt]

I think there’s a dark side for sure…cash and traditional banks are way way worse when you consider that BTC every single transaction is traceable through the blockchain. But I hope it matures anyway 👍👍

[@dodiloi]

Yea sending BTC to scammers or getting stolen. The transparency is useless. You just get a random adress with nothing else. Happened to me to loose 1/2 of a BTC in 2019 and nothing to do about it. There meeds to be a central controllable system to cancel or revert things.

[@IAmebAdger]

There's even a possibility that with ETFs BTC will become less environmentally unfriendly. That will make people like me much more likely to give it a try. The volatility will keep it at 5% for me though if I ever try it.

[@IAmebAdger]

@@bartz4439 it's possible

[@Gonk_83]

Bit coin for sure is gamble, pity the U.K. are so slow to adopt a ETF unlike the Americans. Personally I have 1% of my net worth in it that’s it, if goes to nothing never mind. Hopefully the ETF comes this way soon. Great video Toby.