Why You Shouldn't Blindly Copy Investment Portfolios
Building your own investment portfolio is quite challenging—it requires careful study of each asset and an assessment of its current prospects.
Therefore, there is a common belief that it is easiest to buy the same stocks that are in the portfolios of people like Warren Buffett or Carl Icahn.
To track such portfolios, special services have even been created that allow you to find out which shares a particular financier has purchased — https://ru.investing.com/
Overall, it's a good idea, but it's not always possible to copy everything. The market is constantly changing, and what was once a profitable purchase becomes more expensive over time and loses investment appeal.
To make things clearer, let's look at the situation using specific examples.
Intel Corporation
In January 2025, I bought Intel shares at $21.70 per share. At the time, the price was more than attractive, as it was well off its all-time high of $64 and had a good chance of rising.
The stock has now risen to around $40 per share, and the prospects for further growth are significantly lower. In this situation, it makes more sense to look for more interesting securities with a better risk-return balance.
Nordea Bank Abp
I also bought Nordea Bank Abp shares at the beginning of 2025 at a price of about $12 per share, while the dividend yield was about 9%.
Currently, the price has risen to $16.5, and if you buy this stock now, the dividend will no longer be 9%, but around 6%. That's still not bad, but not as interesting as before.
SIGA Technologies Inc
The third example is SIGA Technologies . I bought this stock at $6.20, but at one point the price rose to $9.50 per share.
The price has now fallen again, but there remains a good chance of further growth, and the dividend yield is approximately 9.5% of the current price. Therefore, this stock remains an attractive purchase.
As you can see, not every stock in your investment portfolio is equally suitable for purchase today.
Most of the stocks in the portfolios of major investors and investment funds were purchased many years ago—at much lower prices. And the fact that Warren Buffett doesn't mean buying them now is the best decision.
Copying other people's investment portfolios without analysis is a denial of one's own judgment and responsibility. It's important to understand the price, conditions, and purpose of each asset's purchase.
Brokers for stock trading on the stock exchange
It's much wiser to use the portfolios of well-known investors as a source of ideas rather than as a ready-made instruction manual. It's the entry price and current prospects, not the owner's name, that determine the success of an investment.
