Planning a share portfolio

Planning a share portfolio
There is no shortagdual sime of tipsters around offering 'get-rich-quElectrical motorick' opportunities. But if you are a serious privateDental Laboratory Equipmentinvestor, leave the Las Vegas mentality to those with money to fritter. The serious investor needs a proper 'portfolio' -- a well-planned selection of investments, with a definite structure and a clear aim. But exactly how does a newcomer tcar dvdo the stock market go about achieving that?
Well, if you go to five recustom made suitsputable stock brokers and ask them what yobag wateru should do with your money, you're likely to get five different answers, -- even if you giveInfrared Cameraall the relevant information about your age age, famstainless steel pipeily, finances and what you want from your investments. Moral? There is no one 'right' way to structure a portfolio. However, there are undoubtedly some wrong ways, and you can be sure that none of our five advisers would have suggested sinking all (or perhaps any) of your money into Periwigs*.
So what should you do? We'll assume that yououtdoor sculpturehave sorted out the basics -- likeeyeglass framesmortDining room furnituregages, pensions, insurance and access to sufficient cash reserves. You should then establish your own individual aims. These are partly a matter of personal circumstances, partly a matter of psychology.
For instance, ifoil water separatoryou are older you have lemerDining tablery go roundss time to recover from any major losses, and you may well wish to boost your pension income. So preserving your capital and generating extra income are your main priorities. In this case, you'd probably conair dryerstruct a portfolio with some shares (but not high risk ones), along with gilts, cash deposits, and perhaps convertibles or the income shares of split capital investment trusts. If you are younger, and in a solid financial position, you may decide to take an aggressive aptrain hornproach -- but only if you're blessed with a sanguine disposition and won't suffer sleepless nights over share prices. If portfolio, alongside your more pedestrian in vestments. Once you have decided on your investment aims, you can thencustom made suitsdecide where to put your money.
The golden rule here is spread your risk -- if you put all of your money into Periwigs International, you're setting yourself up as a hostage to fortune.
*'Periwigs' is the nameEd hardy clothingof a fictitious company. INVESTOR'S CHRONICLE, March 23 1990