I’m a firm advocate of smart investing. Everyone makes mistakes, me included. FTSE stocks are a way to help me boost my wealth and plan for retirement. Despite the fact all stocks come with risks, here’s my approach, as well as some stocks I own and why.
Vehicles of investment
I can buy individual stocks and shares on a recognized and verified trading platform. Alternatively, I can buy them in a Stocks and Shares ISA or even a Self-Invested Personal Pension (SIPP).
Personally, I’ve invested in a combination of the above. Plus, I tend to reinvest any dividends as well as regularly invest a set amount each month. This amount has increased as my income has grown.
I’m looking to make my money grow by putting it to work as I invest in companies that perform well, grow, and reward me for being a shareholder.
My approach to investing
Below are some rules and principles I adhere to when investing:
One of my strongest values is research and homework! I can never do enough about a stock I’m looking to buy. This includes learning about its track record, industry, competitors, growth prospects, any potential risks or scandals. and more.
Next, I want to understand the level of risk I’m undertaking. For example, established firms on the FTSE 100 generally come with fewer risks compared to penny stocks.
I never buy a stock I don’t understand. If I don’t know what the business does or why and how it makes money, I steer clear. This can be changed by research, as mentioned earlier.
I split my investments into a few categories. Without listing them all, some are dividend stocks, growth stocks, small caps, and blue chips.
Finally, I invest for the long term! This is a period I define as a five- to 10-year period. I’m not here for quick buy and sells, but rational, well-considered, long-term investments that will boost my long-term wealth.
Some FTSE stocks I own
It’s always worth remembering dividends are never guaranteed. They’re paid at the discretion of the business. I own shares in a number of real estate investment trusts (REITs). These firms make money from rental income and must return 90% of profits to shareholders. To name a couple, I have positions in Primary Healthcare Properties and Warehouse REIT.
Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.
I own shares in Airtel Africa for growth, which is a telecoms provider focusing on growing telecoms in the continent. This is a high-growth area which could help take the business to new heights.
Two established stocks I own shares in are street wear fashion retailer JD Sports and software firm Sage. Both of these firms experienced huge growth to become the giants they are now.
Finally, a small cap I hold positions in is Topps Tiles. As an established business with a long history, it’s still a smaller-cap stock and has the potential to keep growing while it already offers me returns.
These are just some of the stocks in my holdings and how I believe FTSE stocks can certainly help boost my wealth as well as how I approach investing. It’s worth remembering all stocks contain risks and can go up and down!
The post Can FTSE shares help me boost my wealth and plan for retirement? appeared first on The Motley Fool UK.
Pound coins for sale — 51 pence?
This seems ridiculous, but we almost never see shares looking this cheap. Yet this recent ‘Best Buy Now’ has a price/book ratio of 0.51. In plain English, this means that investors effectively get in on a business that holds £1 of assets for every 51p they invest!
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See the full investment case
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Sumayya Mansoor has positions in Airtel Africa Plc, JD Sports Fashion, Primary Health Properties Plc, Sage Group Plc, Topps Tiles Plc, and Warehouse REIT Plc. The Motley Fool UK has recommended Airtel Africa Plc, Primary Health Properties Plc, Sage Group Plc, and Warehouse REIT Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
