Building a High Yield Portfolio with $2k

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If you want to build a high yield portfolio with $2k off of your model, do you recommend buying one stock of every company listed in your portfolio or do you recommend only buying the top 10 performers. I know everything is weighted, but $2k doesnt seem like a lot to get a portfolio like that started. Thanks!

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Asked on December 14, 2023 1:50 pm
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Hi there,

It is not alot and it will depend if you can buy fractional shares or not. One option, is to buy 4 ($500 each) positions and then slowly add to the portfolio as you have more capital available to deploy. I wouldn't worry too much about building a perfectly balanced portfolio with $2K. When I first started with a few K, i only bought 2 stocks so as to keep my fees low and because there was no option for fractional shares (i know wealthsimple does have these options now).

So yeah, I wouldn't worry about buying all stocks in the model. Start with a lower amount and build on it from there. That said, I don't know if you are a new investor, or if this is just a short term idea, etc. Not sure of the context but if it was me, I'd start with just a handful of stocks and then build from there.

Mat

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Posted by Mathieu Litalien
Answered on December 15, 2023 5:47 am
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Thanks Mat… Any recommendations on what 4 stocks you would choose? Top 4 performers, Bull List…? This would be coming from a newer investor.
(bradjwolter@gmail.com at December 15, 2023 6:58 am)