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I am a strong advocate of smart investing. Everyone makes mistakes, including me. FTSE stocks are a way to help me grow my wealth and plan for retirement. Although all stocks carry risks, here is my approach, as well as some stocks I own and why.
Investment vehicles
I can buy individual stocks and shares on a recognized and verified trading platform. Alternatively, I can buy them into a stocks and Shares ISA or even a Self-Invested Personal Pension (SIPP).
Personally, I have invested in a combination of the above. Additionally, I tend to reinvest dividends and periodically invest a certain amount each month. This amount has increased as my income has increased.
I seek to grow my money by putting it to work while investing in companies that perform well, grow, and reward me for being a shareholder.
My approach to investing
Below are some rules and principles I follow when investing:
- One of my strongest values is research and homework! I can never do enough for a stock I want to buy. This includes knowing their history, industry, competitors, growth prospects, and potential risks or scandals. and more.
- Next, I want to understand the level of risk I'm taking. For example, established companies in the FTSE 100 generally carry less risk compared to penny stocks.
- I never buy a stock I don't understand. If I don't know what the company does or why and how it makes money, I stay away. This can be changed through research, as mentioned above.
- I divided my investments into a few categories. Without listing them all, some are dividend stocks, growth stocks, small cap stocks, and blue chip stocks.
- I'm finally investing for the long term! This is a period that I define as a five to ten year period. I am not here for quick buying and selling, but for rational, well-thought-out, long-term investments that will increase my wealth in the long term.
<h2 class="wp-block-heading" id="h-some-ftse-stocks-i-own”>Some FTSE shares I own
It's always worth remembering that dividends are never guaranteed. They are paid at the discretion of the company. I own shares in several real estate investment trusts (REITs). These companies make money from rental income and must return 90% of the profits to shareholders. To name a couple, I have positions in Primary health care properties and Warehouse REIT.
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I have shares in Airtel Africa for growth, which is a telecommunications provider that focuses on the growth of telecommunications on the continent. This is a high-growth area that could help take the business to new heights.
Two established stocks I own shares in are streetwear retailers. JD Sports and software company Sage. Both companies experienced enormous growth to become the giants they are today.
Finally, a small cap that I hold positions in is Topps Tiles. As an established company with a long history, it is still a smaller cap stock and has the potential to continue growing while already offering profitability to me.
These are just some of the stocks I have in my portfolio and how I believe FTSE stocks can certainly help grow my wealth as well as my approach to investing. It's worth remembering that all stocks contain risks and can go up and down!
