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Investing 101: Top 5 Stock Portfolio Examples

5 TOP STOCK PORTFOLIOS & DIVIDENDS
If you want a baseline for building your stock portfolio, then check out the 5 compiled below, have a read of the introductions and get an understanding of the reasoning these portfolios have been built like this.

You’ll understand the elements of risk each pose, and you should then be able to use these as the basis for building your own portfolio based on your own risk appetite.

As part of this programme, you will have also seen portfolio weightings (portfolio rebalancing and reinvesting), a simple build up strategy which needs to be monitored, you’ll want to implement something on that basis to your own degree, and the build-up of each sector may be built up of your findings within this guidance document.

Remember the following points:

• We are generally wanting to compare potential returns across different portfolios vs the S&P500.

• The higher the risk, the less you apportion, don’t put all your eggs in one basket!

• The lesser your experience, the more defensive you should set yourself up. The more experience you develop, the more comfortable you become, the more aggressive you might want to become.

1) THE FAANG STOCKS PORTFOLIO
So, we have already touched base on this earlier on in the course…FAANG is an attractive portfolio baseline, because the FAANGs have a high margin of safety because of their huge market capitalizations.
Three FAANGS, Apple, Alphabet, and Amazon, had market capitalizations exceeding $1 trillion in 2022. Facebook (FB), Amazon (AMZN), Apple (AAPL), Netflix (NFLX), and Alphabet (GOOG), formerly Google, are five of the fastest-growing stocks in history.


FANG Stock Beat the Market: 5-Year Price Growth vs. S&P 500:

• Facebook +28%
• Amazon +302%
• Apple +296%
• Netflix +305%
• Google (Alphabet) +83%

Considerations for buying FAANG stocks, instead of cherry picking, why not consider diving them equally, forget the units of stocks, but Moreso spread your money in terms of evenly distributed capital percentage.
NASDAQ100 is also a top performer, so possibly investing in a low-cost ETF to track the index. MSFT and PYPL (Microsoft and PayPal) are also two tech giants worth considering in this category.

2) TECH PORTFOLIO (EXPANDED)
A extension to the previously mentioned FAANG stock portfolio would be composed of the following:
NVIDIA (NASDAQ: NVDA), Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), PayPal (NASDAQ: PYPL), Oracle (NYSE: ORCL), and Facebook (NASDAQ: FB).
The inclusions of NVIDIA, Apple, Microsoft, and Oracle in the stock Portfolio is because these stocks pay dividends, they’re also relatively cheap to buy full units, as compared to the likes of AMZN and GOOG. New stocks spoken of below.


NVIDIA makes money by developing and manufacturing high-quality physical products like graphics processor units. Importantly, many of today’s hottest platforms and applications, including games, virtual reality (VR), artificial intelligence (AI), and even cryptocurrency run on NVIDIA hardware.

ORACLE, Larry Ellison’s financial software money machine is a very lucrative tech stock most investors are unaware. Under those circumstances, I consider Oracle a classic value investment.

PayPal expects around $600 million worth of pressure from eBay's exodus in the first half of 2022. After that, though, the fintech giant won't have to report eBay-related adjustments anymore. PayPal ended 2021 with around 392 million active consumer accounts. That makes it an indispensable payment option for 34 million merchant accounts that accept PayPal payments. The number of users isn't the only metric that's growing either, transactions per active account reached 45 last year, an 11% gain compared to 2020.

3) WARREN BUFFET 90/10 RULE
Now whilst this rule is 90/10, this could certainly be a solid starting point for most investors due to its relatively low risk, realistically, it’s not an investment portfolio that many people have the patience or funds for. Simply put, the more funds you have, generally the less risk you need to expose yourself to, investment is all relevant to expectations, if you have lots of money, and lower expectations, you don’t need to stress yourself and exposure your capital too much, lower drawdown and the like.

Typically, those with less funds want to try and run before they can walk, and don’t really think about building a sustainable foundation before investing in riskier instruments. But this is totally the wrong mindset, implement the positive investment habits from the start, and let the compounding effect play it’s part.

Buffett’s model portfolio consists of 90% S&P 500 stocks and 10% short-term government bonds. Buffett designed this defensive portfolio for the average investor he thinks needs asset protection more than growth.

Buffett recommends investors buy a low-cost S&P 500 Index fund for the stocks, but you could use the same strategy for value stocks. The danger with the 90/10/>/>/>/>/>/>/>/>/>/>