Stocks
Individual company shares — used deliberately and sparingly within a diversified portfolio.
What They Are
Direct ownership in a single business
A share is a stake in one company. Its value depends on that company’s performance, its sector, and market sentiment towards it — which makes it considerably more volatile than a diversified fund.
Individual stocks can play a role in a long-term portfolio, but they carry a specific risk that ETFs are designed to eliminate: if one company performs badly, there is nothing else in that position to offset it.
For that reason our equity exposure is built primarily through ETFs, with individual stocks used only in a limited, considered way.
The Trade-off
Concentration cuts both ways
What you gain
- Direct exposure to a business you understand
- Potential dividend income
- Higher upside if the company performs strongly
What you take on
- Company-specific risk with nothing to offset it
- Sharper price swings than a diversified fund
- A stronger pull towards reacting to news
Concentration is the fastest way to strong returns and the fastest way to permanent losses. Position sizing is what separates the two.
At a Glance
How we treat stocks
Primary equity tool
ETFs, not individual stocks. Stocks supplement the allocation rather than forming its base.
Position sizing
Kept small enough that any single company failing does not materially damage the plan.
Selection approach
Established businesses over speculative ones. We do not trade on momentum or short-term news.
Holding period
Long term. Frequent trading adds cost and rarely improves outcomes.
Custody
Held through regulated brokers in accounts in your name.
Get Started
Ready to start saving for your future?
Get a free consultation. We’ll explain how it works in your situation — no pressure, no jargon.
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