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November 18, 2019 in 3rd Guide - Portfolio Building

3 Portfolio building success keys

Superior investors use 3 portfolio building success keys beginning with their approach to markets plus serious cost control and exceptional market awareness as 3 keys to building the most productive investment portfolios.

Portfolio Building That Works Money course, lesson 2, covers the 3 portfolio building success keys superior investors use to build their most productive portfolios. Links at the end of the lesson help you learn more.

What you learn:

This lesson answers the question, what are the keys to successful portfolio building? Knowing and applying the knowledge from this lesson helps you learn superior investor skills.

Anyone can learn superior investor skills

It takes knowledge, time and effort to develop superior investor skills. Anyone can choose to learn and apply those skills and make money work producing the higher returns of superior investors. Any investor can learn how to approach the market, have good cost control and develop the stock market awareness of superior investors. There are more than 60,000 investment choices for your portfolio! What do you pick? Use the 3 keys to unlock the best opportunities for your situation. Learn to do basic investment research and use good judgement. As a result, superior investment returns will follow. Any and all the time, effort and money put into investing produces direct returns for your future.The excellent news is that you can readily learn all you need to know to invest well. Also realize that stock market investing can produce the highest possible returns for your time.

The 3 Investment portfolio keys:

  1. Approach - the investor's basic approach to the market

  2. Cost Control - investors must control and cut every investment cost

  3. Awareness - superior investors develop good economic and market awareness

Use Your Approach, Cost Control And Awareness To Deliver Investment Success

Make these 3 portfolio building success keys contribute to building your portfolio. You can make them core parts of your investment selection process. Use them well and build financial security and retirement independence on an investment portfolio that meets your needs. All three of these key factors significantly contribute to investment performance. Then, use them all. By learning about and using them, you guide yourself towards building a portfolio on a solid foundation. By doing that you get a well-positioned portfolio that produces income and more from the upside performance. First, you need to get comfortable with investing. Do so by building knowledge. Then begin with a conservative income portfolio. Once you see some solid returns, your confidence will grow and you will take the next steps needed. After you have established an income producing portfolio, broaden and refine your approach to increase performance. That opens the door to benefiting from strategies to increase returns while managing risk.

1. Approach

The approach part of the 3 portfolio building success keys include 3 distinct and different approaches that can give investors great success:
  1. Income Investing – dividend paying stocks in established growing companies
  2. Growth Investing – stocks rising on improving revenue and income growth
  3. Speculative Investing – the high risk, high return investment flyers
White Top Investor lessons cover each of these approaches.

2. Cost Control

The cost control part of 3 portfolio building success keys includes all costs. You need to be relentless in controlling costs from any source. By doing so, the difference goes into your pocket! That is important because it means you have more money to work with. Any higher cost loses that advantage and costs you. For each investment, every cost impacts your return. Each cost avoided makes your future better while each cost paid makes your future worse. That is how cost control can and does change your future. Superior investors eliminate excess costs by always keeping an eye on cost control. Remember, any cost avoided or saved today has a compounding impact on your future. Then an absolutely relentless cost control attitude becomes part of your investing personality. As a result, always seek lower costs and always look for ways to lower any and all expenses. Doing so steadily increases your returns and builds wealth. Intelligent cost control is a must. But do not cut a cost if doing so cuts off a needed service, information or essential advice. Because some of the best money you can possibly spend investing is on quality financial planning services. Be sure that advice comes from a qualified and able professional. Cost control is a theme repeatedly visited in many White Top Investor lessons. Adopting this approach gets and keeps costs low. That helps you produce far superior investing results. And over time, it makes a huge difference between adequate and comfortable retirement independence.

3. Awareness

The awareness key of the 3 portfolio building success keys is largely a mental game. So to invest well investors must have an awareness of both the stock market and economy. Taking that broad view helps investors do well. Because the stock market and economy can be out of sync, knowing what to look for in the stock market and economy gives you a much clearer picture. By knowing and using this type of information, you can make the moves that give you the best investment returns. This takes some time to learn. However, by making a small effort you receive a lifetime payoff! Many White Top Investor lessons cover how to build stock market awareness. However, new investors can struggle to become comfortable understanding the broader economic picture. To help, White Top Investor lessons cover this topic well to give you the needed understanding. Understanding the bigger economic picture allows you to become comfortable and aware. Most important, it lets you understand how this bigger picture affects you and your economic future.

Change! The constant in life and markets

Change is the only constant and that applies in every part of investing. It also applies to the stock market and economy. So be aware and ready. Expect change. It is normal. Better or different ideas are regular occurrences. When a better idea or disruptive technology or new player enters the market, big change happens. Well established profitable giant companies can lose market share. At times new players displace the old order. Witness the turmoil among mobile phone producers over the last few years. From the rise and fall of Motorola, Nokia and Blackberry there are lessons we can learn. Disruptive change affects even the biggest dominant player in a market. Investors must pay attention and be aware of such changes.

Why this lesson matters

Knowing and using the 3 portfolio building success keys allows you to build your investment portfolio like a superior investor. Learning and applying the portfolio building success keys helps become a superior investor. That puts you on the path to building financial independence, security and retirement comfort.

Key takeaways from lesson 2, 3 Portfolio building success keys:

Superior investors use 3 portfolio building success keys. They begin with their approach to markets plus serious cost control and finally exceptional market awareness. The combination of these 3 keys get used when building their most productive investment portfolios.
  • Approach the market like a superior investor.
  • Aggressively control all investing and money management costs.
  • Develop the market awareness of superior investors.
  • Superior investors develop uncommon stock market awareness.
  • Understanding factors influencing stock markets give superior investors wealth building advantages.
  • Constant change affects life, markets, investing and wealth building.
  • Superior investors are alert to change and work to manage change.

Other lessons related to: 3 Portfolio building success keys

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Smart investors use smart diversification

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Investment impatience destroys wealth

6 Lessons from 1 speculation

Investors hold patient cash

Stock scam awareness defense

Comments and questions welcome

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Portfolio Building That Works Money:

Introducing Portfolio Building That Works Money Lesson 1

3 Portfolio building success keys Lesson 2

Stock holding size matters Lesson 3

Costs drive portion size Lesson 4

Controlling emotions for investing success Lesson 5

Join exceptional wealth builders Lesson 6

Pyramid portfolio wealth building Lesson 7

Next lesson 3: Stock holding size matters

Have a prosperous investor day! Bryan White Top Investor whitetop@WhiteTopInvestor.com WhiteTopInvestor.com Let’s connect, follow me; Twitter LinkedIn Facebook

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About the author 

Bryan Kelly

Bryan Kelly made the White Top Investor mission, investing for all, by sharing his investment knowledge learned in decades of stock market investing. His knowledge and experience are shared in 5 Ultimate Investing Success Guides. White Top Investor lessons teach new investors how to make money work investing in the stock market. Lessons guide beginners to investing success, individual freedom, personal empowerment, and financial independence. For more see the White Top Investor About page.

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