Five Years of Stockopedia StockRanks

Stockopedia Stockranks

3 Responses

  1. Matthew says:

    Thanks for the article, I’m keep to start factor investing. I’m trying to work out whether I have a large enough portfolio to start buying individual stocks for factor investing. If you need a minimum of 20 stocks, what would you say the minimum holding in each stock should be to make the purchase fees worth it? I’m thinking trading costs less than 1% of each holding? Othwise I will have to do it via an ishares etf.

    • Mike Rawson Mike Rawson says:

      Hi Matthew,

      This is one of those things that you have to decide for yourself. If you want to stick to 1% and your trading commission is £5 (iWeb) then you could go as low as £500. Add in the stamp duty and you are up to £1,000. Add in the round trip (sale as well as buy) and you are up to £2K.

      So for a 20-stock portfolio, you would need £40K.

      I normally start a new style of portfolio with £100K these days (£5K per stock), but I’ve previously started with as little as just one year’s ISA contribs (£15K then, £20K now). Let me know what you decide.

      Mike

  2. Matthew says:

    Hi Mike,

    I agree with you, I think £2k minimum per stock would be sensible (so £40k total).

    I’m thinking an allocation of ~15-20% of my equities should be in smart beta/factor investing, with the remainder in passive index funds. This means that the total amount of equities I need to justify the individual stock purchases is ~ £200-265k.

    I’m in my 20s at the moment so this sum is well above my current portfolio. Therefore I’m planning to get my factor investing exposure from ishares multi factor etf (IFSW). This won’t be as satisfying as doing the stock picking myself, but the transaction fees don’t make sense for myself at the moment.

    Thanks again.

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Five Years of Stockopedia StockRanks

by Mike Rawson time to read: 5 min
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