Let’s say an investment firm has given you $100,000 to invest in the ASX to make a substantial return by EOY 2020. How would you set up your portfolio for 2020? You have been asked to make a solid return over a 1 year period, which is generally a short time frame for stock price growth. Firstly, I would personally set up a watchlist of potential stocks that hold potential come 2020. Before we start I recommend reading our disclosure statement, as this information is not advice it is soley our in depth study on individual stocks on the ASX. Enjoy!
Some of my researched picks that hold strong signs of potential include Paradigm Biopharmaceuticals Ltd, ZIP co, Telstra and Novita Healthcare. These stocks you put in your portfolio hold different risk values (Beta) and can be diversified to mitigate these risks. When weighting stocks within your portfolio , one strategy is to set the portfolio beta to 1 and let excel compute the specific weightings.However, for this sake of keeping this article simple we will stick to weighting based on generalised risk.
Before I start, I am obliged to remind our viewers that this is not advice only general commentary from my extensive research in this area.
After moving stocks around for an hour or so I found a portfolio of $100k that has a collective Beta of 1.3151 and holds companies which have very promising price sensitive announcements in 2020 such as PAR. Alot of this information I used was from recent articles written by myself and Patrick Mc Loughlin, which includes the individual potential these companies hold in 2020. This was our in-depth study and we recommend you read our articles aswell as conducting your own thorough research.
This is not to say they will rise , however after looking through historical data as well as the financial information of each company they do look a promising investment. I made the decision to include more speculative stocks such as IMU , PAR and NHL as the end goal was to make a solid return over a short time frame which means you must make a calculated risk. Many people have strong opinions on some of these stocks so I will quickly breakdown each company and why I added them to this $100,000 portfolio for 2020.
Firstly, I wouldn’t have made a 2020 portfolio without Biopharmaceuticals Limited (PAR.AX). I first heard about this company from a friend and it was soon made public that this company has some serious potential. PAR has 4 key price-sensitive events in 2020 that will determine the success of it’s newly recycled drug. I decided to weight this stock at 24% due to it’s moderate Beta of 1.24 according to the intelligent investor. If you want to learn more read more about this stock click here
Imugene Limited (IMU.AX) holds a very strong risk however if it’s clinical trials show success, the share price will drastically increase. I weighted IMU at 4% equity or $4000 as this will reap the full reward of a price increase however leaves us still $96,000 to work with. You could call this a calculated “punt” as even a small price increase of 2-3 cents would double my investment. If you want to read into IMU trial dates ,click here
Telstra Corporation LTD (TLS.AX) has a specific role in balancing/diversifying risk within the portfolio. With a Beta of 0.36 according to Yahoo Finance, it holds systematic value in offsetting a downturn in the market which will effect other stocks in this portfolio. Telstra dividends, paid twice a year from personal experience are a great way to offset current losses or when the market is bearish. More information
Novita Healthcare Ltd is the other very speculative option at $0.06 currently. However, their product is revolutionary in the treatment for ADHD and ADD that doesn’t involve the use of Ritalin or Dexamphetamines. This stock has strong potential however to mitigate capital loss I decided to keep the investment under $15,000. Relying on a penny stock to make you money is a very dangerous game and you must be very educated in the company operations and financials before you buy. Here’s a detailed article on NHL product and its potential in 2020.
Lastly, ZIP co would have to be personally my favourite stock of 2019. It’s come up this YTD in the BNPL industry has caught the eye of many investors. To the point where they have had to raise more capital to a company the growing demand in their stock. Their operations will expand into the UK in 2020 and this will be great for growing members and increasing total revenue. If you want to learn more I have written 2 articles on this company here and here.
I would like to hear your feedback on this portfolio and how you would personally improve on it. Enjoy the holiday s- Tyger Fitzpatrick, Founder
Here is our free, uncomplicated, and extensive ASX portfolio
The information above should not be taken as financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.
If you enjoy our articles or are wanting to learn more, you can subscribe to us for free via email and get updates when we post new articles. From all of us at YIG, thank you for the support.
Written by Tyger Fitzpatrick, founder of YIG.