In part seven of this investing eight-part series, Judith Mackenzie and Rosemary Banyard discuss how they construct a portfolio of stocks and how they manage them.

Key topics covered:

·         What is portfolio construction and portfolio management?

·         What types of risks should investors think about when constructing a portfolio of stocks?

·         How do Judith and Rosmary diversify risk across the stocks they own?

·         What tools or software do they use to aid them in managing their investment portfolios?

Each episode of this now eight-part series builds on the next as they walk you through an investor's journey.

If you have ever wondered what a fund manager does, how they think, the types of investments they look for and what led them to pursue careers in finance and investing? Then you’re in the right place, join Judith and Rosemary as they peel back the veil and share their guiding principles and experiences from careers spanning multiple decades in the finance industry as investment fund managers.

In the previous episode, Judith, and Rosemary share the highs and lows of meetings with company management, red flags to look out for and their views on annual general meetings.

Timestamps:

 2:05 Judith and Rosemary share what is portfolio construction and portfolio management.

5:10 What are the key parameters one would need to consider when constructing a portfolio of stocks.

13:10 What are the risks investors should consider when constructing a portfolio of stocks.

17:50 How Judith and Rosemary asses the different weightings of the stocks they own.

23:00 What position size do they use when making their first investment.

25:00 Things to consider when it comes to thinking about sectors when constructing a portfolio of stocks.

29:40 Do Judith and Rosemary use price targets?

32:40 Do Judith and Rosemary have teams that support them in managing their investment portfolios.

34:20 How do Judith and Rosemary manage their thoughts when they are about to push that button.

36:30 What are the constraints to portfolio construction and management?

40:30 Closing thoughts and wrap up.

Hope you enjoy this episode and have a wonderful day.

The FYR Team

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Links & Resources: 

Visit Downing Fund Managers here: https://www.downing.co.uk/downing-fund-managers

Follow Downing on X/Twitter @downingllp: https://twitter.com/downingllp?lang=en

Investors reading and watch list for the long-term investor: https://www.fundyourretirement.com/wp-content/uploads/2023/11/Top-picks-for-a-long-term-investor.pdf

Visit Fund Your Retirement: https://www.fundyourretirement.com/

Follow FYR on Twitter: https://twitter.com/FRetirement

Disclaimer: This presentation is for educational purposes only. All opinions and information are for demonstrational purposes and do not constitute investment advice. Trading and investing carries a high level of risk and are not right for everyone. If you need financial advice, consult with a regulated financial adviser in your country before making any decisions.