Popular Investment Portfolios

Investing: a complicated process

Investing in the stock market can be a complicated process, especially if you are starting.

One of the biggest challenges you may face when investing in stocks is the lack of guidance and expertise.

You are not alone.

With over 3,000 stocks on Nasdaq and another 2,000 stocks on New York Stock Exchange, it may be difficult for anyone to decide which stocks to buy, how to evaluate different investment opportunities, or how to manage your risk effectively.

This often leads to missed opportunities for growth or significant losses in your portfolio.

Formula Institute’s pre-made portfolios are designed to help you to invest in a disciplined manner. We have a strategy for you so that you can maximize your returns to attain your desired financial freedom.

Pre-made Portfolios for Different Investment Outlooks

Although you may want to make money in the stock market, your approach to investing may be different from the next person’s.

We created 10 different pre-made portfolios to help you choose companies suiting your individual needs.

If you are a conservative investor, there is no reason for you to invest in new, highly volatile, and risky technology or biotech companies.

On the other hand, you may want your money to work harder for you. You may not like holding a few well-established and defensive stocks for decades to receive a moderate gain.

Instead, you may want to invest in growth stocks for a superior return, even if it means higher exposure to market volatility.

At the same time, you may be neither a conservative nor a growth investor.

You may be like me, a concentrated investor for thirteen years.

That means I like investing in a few companies I believe will appreciate quickly, confirming an above-average return for my investment.

I do not believe I have thirty years to be wealthy.

And most importantly, I believe you cannot avoid market volatility by investing only in big-cap or blue-chip stocks.

That is how I turned $37,000 into $154,000 within three years.

And I bought neither Tesla nor Amazon or Google or Apple.

Can you avoid market volatility by investing in well-established companies?

Dow declined significantly in 2002, 2009, 2016, 2020, and, recently, in 2022.

At the moment of writing this article, Dow is sitting at 32,856.

It is about 4,000 points down from its all-time high of 36,799 points.

And it is not that only volatile companies declined during these downturns.

At the end of 2022, Meta (Facebook) declined to $84 from its all-time high of $378. Amazon fell to $85 from $185 a year before.

Google (Alphabet) commands about 90% of the world’s online search traffic. But it too fell from $149 to $88.

You cannot save your investment by investing in hand-picked companies anymore.

You need an investment strategy

You need to know the following:

• When to enter the market
• How to create a position
• How much to invest
• When to exit
• How to exit.

Factors we have taken into consideration while making our pre-made portfolios

I am certainly not the best investor out there. Not even close.

And, to speak the truth, I lost money in the stock market in my early days as an investor.

I lost thousands, and I did not lose more because I did not have more.

I lost money by investing in Boeing, Blackberry, Intel, and Bank of America.

I invested in CVS Health and Ford and lost more.

But every time I lost, I asked myself why. 

That is how, over several years, I learned how to analyze a company’s cash flow, earning potential, stability, market capitalization, and culture of innovation.

These are the factors, except for one, that I have used in framing these ten portfolios.

It is not the How but the When

You see, when I invested my last $37,000, I chose only a few companies to invest in.

They all belonged to the same sector.

I knew when an entire sector collapses, it cannot be the fault of any individual company.

And I knew all these companies would bounce back when the time came.

I was right.

And that is important for you.

In early 2020, Goldman Sachs fell from $237 to $154 within two months.

Meanwhile, Morgan Stanley fell from $54 to $34, and the Bank of America fell from $35 to $20.

But they all bounced back over the last two years.

Today, Goldman Sachs is $346, Morgan Stanley is $96, and the Bank of America is $33 per share.

They not only recovered from their decline but also, in the case of Goldman Sachs and Morgan Stanley, reached all-time highs.

Anybody who invested in these companies made significant wealth within less than two years.

It is the When for many stocks now

Today, Nasdaq Composite Index sits at 11,400 points. Its all-time high was 16,320 points in December 2021.

The decline is over 30%, which is significant but not unthinkable.

It fell almost equally in 2020 but soon overtook its all-time high and gained another 80% within a year!

Nasdaq stocks are struggling today because of high inflation and high-interest rates.

But, as you can see in the following chart, inflation always comes down quickly.

So does the interest rate.

Inflation cannot stay high for long because high-interest rates will compete with it unreservedly.

When interest rates begin to fall, some of the smart stocks that became victims to inflation will rise again and make new all-time highs.

Choose the Premade Portfolio That is Right for You

Now is the time to invest.

Choose a portfolio from below and start investing:

1. The Growth Investor: A portfolio focusing on high-growth companies with strong potential for future returns.
2. The Contrarian Investor: A portfolio that invests in undervalued companies overlooked by the market.
3. The Blue-Chip Investor: A portfolio that includes established, large-cap companies with a proven track record of success.
4. The Real Estate Investor: A portfolio that focuses on the real estate industry, including companies that own and operate commercial and residential properties.
5. The Value Investor: A portfolio that invests in companies undervalued by the market, with solid potential for future growth.
6. The Technology Investor: A portfolio that includes companies in the technology industry focusing on innovation and growth potential.
7. The Aggressive Investor: A portfolio that invests in high-risk, high-reward companies with potential significant returns.
8. The Canadian Investor: A portfolio that includes Canada-based companies, providing exposure to the Canadian market.
9. The Concentrated Investor: A portfolio that invests in a smaller number of carefully selected companies, focusing on the solid potential for growth.
10. The Buy and Hold Investor: A portfolio focusing on companies with strong potential for future growth and success.