Originally Posted by
CJ
A couple of points:
- unlike property, there is no tainting. Just because you hold one share for trading, does mean the hold portfolio (or all associated portfolios) are tainted.
- it is on a share by share basis.
As such, diferent portfolios is not needed but is good practice.
The thing I struggle with as a buy and hold investor, is how can I buy a share like Xero or DIL (both small parts of my portfolio at purchase price), Obviously growth, not dividend stocks. However, they do form part of a diversified portfolio. And I fully expect them to become good dividends stocks at some stage - DIL in the next year or so and Xero in about 3-5 years.
Or how about RYM - dividend yeild is pathetic but combine with Growth, a good stock as part of a diversified portfolio. Even some of the utilities I own pay less than the interest rate on my margin account.
I am obviously not buying for a quick, or even mid term trade but if you look at the yield I get, potentially you could argue at least 50% are not bought solely for yield.