Making a long-term portfolio

• How to make an individual investment portfolio.
  (USA and the world at large)
  
  As the great Oracle of Omaha Warren Buffett said,
  "Investing is simple, but not easy."
  
  For reference:
  
  Warren Buffett is an American entrepreneur, one of the largest and most famous investors in the world, whose fortune was estimated at $ 108.4 billion in September 2018 and $ 84.9 billion at February 12, 2019, making him the fourth richest man in the world.

Arithmetic prompts and history confirms: a winning investment strategy is to purchase shares of all nationally listed companies on the market at the lowest price (meaning US companies), thereby guaranteeing you receive almost all of the income generated by issuers: in the form of dividends and due to the increase in the value of shares.

For a successful investment, two things are important: Patience and time.

So if you form a portfolio at the right time, then there will be no problems with patience.

And time is now what is needed.

You can develop and implement an investment program to increase your capital, and it will bring income to you and your loved ones over the next decades.

There are certain nuances when creating a portfolio, in this post it is difficult to take them all into account. The main point is to show the opportunities that are available now, but soon they will not be ...

But if you do this now, then the growth rate of your capital in the long run is likely to make you very happy. This will be a pleasant addition to the feeling of satisfaction from the consciousness of how much you personally have earned for yourself and your family over the years.

Key elements of your return on investment portfolio:
-Targets
-Diversification
-Balance
-Ability to exceed key benchmarks in profitability, i.e. indices

So, let's begin,
Goals

It’s important to set goals before you even create a portfolio.

Achieving a higher level of return than risk-free investments. Determining the level of profitability that will meet your financial goals. This is for the entire period during which you plan to make investments.
Maintaining an acceptable portfolio risk level for you.

Diversification

The formation of the portfolio by this principle will smooth out fluctuations in its profitability and significantly reduce the level of risk, while having a positive impact on profit margins.

Balance

This is achieved in various ways. The portfolio may include both assets, the main purpose of investing in which is to ensure a constant stream of income (it may include both coupon payments on bonds and dividends), and assets characterized by growth prospects for capital (stocks and ETF funds), and they are all characterized by unequal levels of risk and potential for profitability.

Ability to exceed key benchmarks in profitability, i.e. indices

Here it is important to choose the right securities for the portfolio, for example, so that first-class securities of leading industries are present in the portfolio.

Access to the right markets and assets is also important, I personally use the US broker Interactive Brokers.
(it is beneficial for accounts from $ 10,000 and above. Ideally, from $ 100,000, there are no commissions for inactivity and charge interest on the account balance, this is important in the long run)
And as I said, they provide access to more than 100 markets around the world.
And more than 10,000 assets are available in the United States alone. For comparison, in the Russian Federation on the MICEX, there are about 300 companies in total.

We decide on the composition of the investment portfolio

Important. First of all, evaluate your financial and moral readiness to incur losses.

If you are relatively young and you have many productive years of work ahead of you, you can afford to accept the risks specific to a portfolio consisting mainly of stocks that have the highest yield potential in the long run.

Over time, when your capital reaches a sufficient amount to meet your needs after the upcoming retirement, as well as

• financing other necessary expenses, you will most likely have to reduce the level of portfolio risk (there is no need to risk a reliable material base).
  
  Many people simply do not have time to understand the intricacies and nuances, and they turn to me for help. If you need help, then you can contact me.
  
  That's all for today.
  
  Always yours, Victor Bavin)

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