Building your portfolio. This depends on your resources. If these are limited I would suggest making your investment unit £500 (as used in the examples above) and concentrating in the early days on new recommendations. If you purchase one new share roughly every two weeks you will have 25 shares in your portfolio after a year, 50 after two years. You will now be ready to start making follow-up purchases based on a six monthly time scale if you haven’t already started. I would suggest that you also continue adding new shares to your portfolio but at a slower rate. On a very long term view I want you to end up with a very large portfolio, even 100s of shares. Follow my strategy and this programme will allow you to scale your portfolio at a rapid rate, especially if general stock market conditions are favourable.
You are probably wondering where the money is going to come from to finance such a rapid rate of investment – building a 50 share portfolio in two years plus follow-on purchases and power buys. I am not making any promises here but it is not inconceivable that this could all be financed by a savings programme of £250 a month, £125 each for a couple; that is the miraculous effect of the 4 ‘B’s – buying well-chosen shares, follow up buying, borrowing to buy (which means a £125 deposit buys £500 worth of shares) and buying for the long term.