TFSA – Foundational stocks

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I am in the process of building out my TFSA and have a sum of $10,000 CAD to invest.
I am looking at a portfolio of aggressive growth at least in the beginning. I am planning to use WealthSimple as my Brokerage.

I am looking for help in getting the best out of what I have to invest.
With the above in mind would I need to buy all 11 foundational stocks listed,if yes in what proportion/% for each.

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Asked on January 13, 2024 5:47 pm
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Private answer

Hey there,
You don't have to buy all 11 at once, and it really all depends on what your portfolio looks like today. Personally, I keep my foundationals to ~5-7% of my portfolio. These would be the largest individual positions in my portfolio. I then complement my portfolio with other, riskier assets as it relates to my risk tolerance. I don't like to have any single position account for more than 5-7% of my portfolio (my own risk tolerance).

That said, when i first started out investing, I didn't focus so much on the weightings because I knew that would balance itself out over time as I got older. You could easily take that $10K and divide it into 10 or 11 positions, or simply do 5 positions (2K in each). There is no right or wrong answer here. Just make sure that you have a long-term plan to guide your decisions.

Using the 5-7% rule I have as an example. Over the short-term, I am ok with a position deviating from that, but over the long-term, I'll always re-balance to ensure I am inline with that.

Let me know if this makes sense.

Mat

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Posted by Mathieu Litalien
Answered on January 16, 2024 5:39 am
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Thank you Mat, yes this helps.
(anthonyclarence@gmail.com at January 19, 2024 3:56 pm)
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