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Playing it too safe

Is our 32-year-old reader wrong to be attracted to defensive stocks?
Playing it too safe

Matthew Bird is 32 and has been investing seriously since 2005. He initially started investing to pay off an interest-only mortgage of £105,000. After seven years he has achieved this goal but will continue to invest as long as he sees value in the market.

"Usually, I like to buy safe, well-known, large-cap companies with good dividends and the possibility of moderate growth. However, some of the portfolio is quite speculative - ie, banking, insurance and builders. I am still positive about all of my holdings. I think in years to come Lloyds Banking may prove to be the most lucrative investment but am wary of over-exposing myself to one company.

"The yields from insurers are very attractive, so maybe a top-up of Aviva or possibly Admiral could be next. I'm a bit disappointed with the performance of my Tesco and AstraZeneca shares, but both look great value so I might increase those, too. The tobacco sector has done very well lately - if it goes up much further I may trim my holdings a little so I'm not over-exposed there."

Reader Portfolio
Matthew Bird 32
Description

Risk-averse share portfolio

Objectives

Pay off mortgage

Matthew Bird's portfolio

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