Portfolio Breakdown In this post i'd like to go through a basic portfolio and breakdown the assets that come together to form it. In this first image we can see a basic portfolio containing only stocks. This is a fairly basic portfolio were we can see our fund, this makes up the cash money part of our portfolio, and it is from here that we purchase the shares and assets that make up our portfolio. As we can see from the diagram above, our fund is used to purchase companies that then go on to take up holding in our portfolio. From here money returns made by these companies, be this from realized capital gains or dividends is then funneled back into the funds portion of our portfolio, ready to be used to purchase even more companies. The longer this goes on the more your companies will be contributing to your fund, and eventually your companies contributions may even outgrow your own. The Portfolio Effect Bigger portfolios may have more assets that make up the whole, thes...
I talk about stocks and shares that i love and ideas for portfolios.