{"id":2082,"title":"How to build a £1 million portfolio","publisher":"Share Talk","author":"sharetalk","published":"2016-01-25T01:39:36+00:00","modified":"2017-08-11T15:15:46+00:00","canonical_url":"https://www.share-talk.com/how-to-build-a-1-million-portfolio/","markdown_url":"https://www.share-talk.com/how-to-build-a-1-million-portfolio.md","json_url":"https://www.share-talk.com/how-to-build-a-1-million-portfolio.json","category":"Blogs","categories":["Blogs"],"tags":["jpsc01"],"featured_image":"https://i0.wp.com/www.share-talk.com/wp-content/uploads/2023/11/Stencil-Google-Chrome-2023-04-19-at-2.47.43-PM.jpeg?fit=1231%2C615&quality=89&ssl=1","format":"news","language":"en-GB","content":"![how to build a 1 million pound portfolio](https://www.share-talk.com/img/1m.jpg)\n\nThere are six important steps you need to take when building a £1 million portfolio, in this report we discuss each in turn.\n\n1- Start early. £1,000 invested at aged 20 compounding at 5% would be worth about £7,040 aged 60.  The same amount at the same rate but invested 10 years later would be worth about £4,322.  ie starting early gives a 63% better result.\n\n2 – Save.  If you can only put away £10 a month you can create a portfolio.  Even if some months eg Christmas it is hard, make it an intention and the pot begins to build.\n\n3 – Take advantage of capital accumulation moments.  Job changes with pay offs, bonuses, a win on the horses all of these can provide some funds for investment.\n\n4 – I have made some good investments.  I have also made some bad ones.  But my worst losses are only 100%.  Whereas gainers can keep on rising.  I have, sadly, never bought a rocket ship which gains 100% overnight and then does it again next week.  But I have been able over the years to buy some businesses that have given 40% plus in a year and do that again.\n\n5 – Learn when to cut your losses and run your winners.  Sometimes the market is wrong and we have a great idea that should be held and more bought.  But if your investment thesis is wrong recognise this and move on.\n\n6 – Take advantage of the money the government gives you for free.  ISA’s, pensions etc can all be used to add to your gains.\n\nOf these only item 1 is genuinely difficult to do.  If you are already 30 you cannot become 20.  But this only means that you need to do more of 2 – 6.  I absolutely do believe that anyone who wants to can invest well and can build their own portfolio and with it their financial security.\n\n[Article written by @jpsc01](http://www.twitter.com/jpsc01)"}