USA’s Stock Exchange Investment and Diversification Strategy in Greece/ Europe
As I shared with my previous post about investing I am currently using Revolut as it is the only way to get direct access to the US’s Stock Exchanges. The Revolut app has 450 U.S. stocks available from NYSE and NASDAQ.
As I posted previously Revolut offers 3 free trades per month in the free tier, furthermore 8 for Premium and unlimited trades for Metal tier subscribers. For my personal investment strategy the 3 free trades,commission free, seem currently adequate. At the end of each month, during week days I exchange EUR to USD and top-up my investment account, then I split this amount between my 3 monthly picks. If you want more than 3 trades per month then a flat fee of 1€ per order applies.
Currently I have invested 3 times in 9 different companies and my main aim is to reach 36 different stocks. The stocks I have selected are Blue Chip companies with huge valuations and very reputable. As I mentioned in my previous post you can buy and sell fractional shares, meaning you can buy 0.001 stock of Google, through Revolut, from as little as $1 up to $1000 per order. My first picks and the next that I have planned for the future are inspired from Vanguard’s U.S. Growth, a large growth and value based index fund. Of course this fund has 272 different stocks, I will be fortunate if I have 10% of that number in the next years. For researching stock opportunities I have used a lot of different websites for reading and comparing metrics. Some of them are https://finance.yahoo.com/ yes Yahoo is still around, the webull app (it is a trading app,of course trading is not available in Europe, but it has a cool paper trading feature and various information) and https://simplywall.st/
After my stock portfolio reaches 36 different stocks, Phase 2 will come into play. At that time I will focus on increasing my position in the top performing or most promising of those 36 stocks. As this is something far down the road, I will probably also re-balance under-performing stocks, if I get the chance.
Here you can see my first 9 stocks. Six of them have greater percentage because I decided to increase my monthly investment amount, after my first round.
And here is the current value for each of them. The value has increased by 8% .
As you see AMD,Disney and Tesla performed really well and I was really lucky picking them early,as they have grown greatly this year. On the other hand Netflix stock is falling, probably thanks to Disney+.
Currently EUR/USD pair is trading around 1,10-1,11 USD, one benefit of investing in USD is that if the rate changes you still benefit. Higher rate means that you can buy more USD which means more stocks. Lower rate means that already invested funds have greater value in Euro. So when you are implementing a dollar cost averaging strategy you can get a zero exchange risk in the long run.
Behind the scene, Revolut has partnered with DriveWealth to enable trading and Sapia partners act as intermediary.
Please also bear in mind that Revolut also charges a custody fee of 0.01% of the market value of your assets on an annual basis.
In addition any dividends paid from the companies will be credited to your investment account.
Something I wasn’t expecting happened this week. Revolut sent me an email about Visa’s shareholders meeting with a poll to fill in and this means you have a say in the companies you buy in.
I need to add a disclaimer here, that as I am not a professional financial trader, this posts should not be treated as financial advice as more of a how to guide and experience sharing.