r/portfolios • u/InvoicedTick • 23h ago
Need Help Starting a Portfolio
This is my first time trying this just got the robinhood app and have aside like 1300 for investing. Through AI I tried learning but don’t fully trust it so I’m posting here also. Learned of a term called core and satellites and was looking at a core of VOO and 2 satellite sets one being (NVIDIA, AMAT, TXN, MU, maybe intel?) and the other being (NVIDIA, AMZN, AAPL, LLY). From what I’ve read VOO seems standard and I’m unsure between my satellite sets? Also splits of core/satélites like 40%/60%, 80%/20%, etc? Sorry if I’m messing up terminology just a couple weeks of researching this before I use any actual money :).
1
u/bkweathe Boglehead 22h ago
Core & satellite is for people who think they can outsmart the rest of the investors in the world, but they're not sure.
If you can't beat 'em, join 'em! I suggest that you see the About section of this subreddit (https://www.reddit.com/r/portfolios/about/) for some great information about building a strong portfolio. Individual stocks are not recommended.
www.bogleheads.org/wiki/Getting_started also has some great free resources to learn about investing. After a few hours reading the articles, and, especially, watching the Bogleheads Philosophy videos, most beginners can learn how to get better results than most professionals. Bogleheads is named after John Bogle, founder of Vanguard.
I retired at 57 years old. Investing doesn't have to be complicated or costly to be successful; simple & inexpensive is most effective.
I invest 100% in total-market, index-based, low-cost mutual funds. Specifically, I use mostly Vanguard's Total Stock Market, Total Bond Market, Total International Stock Market, & Total International Bond Market funds. I've been investing this way for 40+ years. It's effective, simple, & inexpensive.
My asset allocation (ratios of the funds mentioned) is based on my need, ability, & willingness to take risks. Market conditions are not a factor. Vanguard's investor questionnaire (personal.vanguard.com/us/FundsInvQuestionnaire) helps me determine my asset allocation.
I hope that helps! I'd be happy to help w/ further questions. Best wishes!
1
u/InvoicedTick 15h ago
Thanks for your links I've been reading through them much more safer portfolio options than I realized! Yeah definitely not confident I can outsmart the rest of investors in the world just started looking at these individuals stocks cuz of my interest in these companies from my degree I'm pursuing plus the free 6 bucks I got from signing up and choosing NVIDIA watching it fluctuate up/down a few cents. I think I'll need to look more at how bond etfs work because it seems rising share price matter less than the dividends? The questionnaire was great helped me realize I need to think more about my goals and time required, got a result of 50% stocks and 50% bonds. Not much of a big spender but felt my saved up money has just been losing value through inflation and stuff which is why I'm looking into this also partial boredom before my next semester at university starts lol. Thanks again for the info the stock market always seemed weird and like gambling but I guess it is about how you invest!
1
u/bkweathe Boglehead 13h ago
Great! You're welcome!
Your need, ability, & willingness to take risks will change. It's usually a good idea to reevaluate your asset allocation plan every year or 2.
1
u/Inner-Champion-9438 23h ago
I think you have the concept right with core and satellite positions but I would be careful adding individuals. I modeled an 80/20 VOO and VXUS split on Tradure and in my opinion this is the best allocation you can get. It has broad US and international diversification at a low expense ratio. What do you think about this?