Portfolio Construction: Four Key Factors To Consider

- Simon Brown

Every so often somebody asks me to have a look at their portfolio and make recommendations about what they own and give a critique on how the portfolio is structured. I always decline. I’m not certified to give individual portfolio advice and – even more importantly – a portfolio forms part of a broader scenario in which one also has to take into account the following: the investor’s age, other retirement products, medical aid, insurance and so on. Sure, a portfolio is important, but it is just one part of a bigger picture.

But, if I were to look at your portfolio, this is what I would be looking for:

1. How many companies do you hold?