Click here >> Lesson 5 An Aerial View of Your Portfolio

If you have limited time, resources and money, which of course you do (as does everybody else) then you have to pay close attention to where you are spending them. If you are focussing your efforts and capital on fixing the ‘small’ things, then you will get a proportionate ‘small’ benefit.

If I have a £500k portfolio split between 50 companies invested at £10k each, and I ignore 49 of the companies and spend all of my time trying to get the most out of that 1 investment, how do you think my portfolio will do? Exactly – terribly.

Similarly, if I can focus on the WHOLE portfolio and optimise it, the ROI Return On Investment that I get is much greater. If I improve the total portfolio by just 2%, that’s another £10k profit. In order for me to make £10k on the £10k investment I would have to make 100% return.

Nature gives you all the clues on this one. Just look down from an aeroplane and a whole city makes sense. You can see the bottlenecks, where the traffic is, where the different buildings are, where most of the people are congregating. Whatever information you need it’s all there.

So that should be the focus, take the aerial view and make your decisions from there.