Alpesh B Patel OBEManaging Partner (UK), RootBridge Capital · Asset Management. Great Investments Programme. 18 Books, Bloomberg TV alum & FT Columnist, BBC Paper Reviewer; Fmr Visiting Fellow, Oxford Uni. Multi-TEDx. UK Govt Dealmaker. alpeshpatel.com/links Pro

Invest Smarter: Your Guide to Portfolio Education #shorts

20 Jun 2026 · 1 min

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In this short dialogue, the speakers stress that the content is purely educational and not financial advice. They argue that investors should move away from relying on mutual funds and instead educate themselves to select individual securities that match their personal risk capacity. The recommended approach is to split a portfolio roughly 50% into safer holdings intended for a long‑term (10‑year) horizon, aiming to track a benchmark. They advise reviewing the portfolio annually and rebalancing each year: if a position drifts far from its target weight (e.g., exceeds 10% when the target is 5%), it should be trimmed back to the intended allocation. This practice reduces single‑security concentration risk, illustrated with the recent surge in Western Digital shares. The overall message is to maintain a disciplined, education‑driven, diversified portfolio rather than following specific fund recommendations.

It's education. It's not financial advice. We're not going to say to you, now move from that fund to this, because as you've heard, what we think is you shouldn't be in funds at all. You should be educating yourself to buy securities yourself to suit your risk capacity. But again, on that educational point, what the next step is, any final thoughts?
It all stems down to education, and the whole purpose of education. When you have a fund and you— because everyone will suffer from every other nuance, or risk changes almost daily depending on what's happening in the day anyway. So I would, I would not give any advice other than say, understand your risk implicitly. When you understand that, and it's going to be different. So split your portfolio up, have that 50% in the safe, let's hold it for 10 years in a good portfolio, which delivers something close to the benchmark.
Rebalance annually, but revisit obviously annually, just in case something's— AI's come along. You don't want to put money from 10 years ago and then miss out on AI, which is why we rebalance annually. We tell people rebalancing means if you've had 20 securities, 5% in each, you bring them all back to 5% at the end of the year. Or if during the course of a year something's gone way above 10%, as has happened to us this year with things like Western Digital, which have shot up. So you bring it back once it's gone over 10% of the value of your portfolio, you can bring it back to 5% or keep it at 10%, for instance. So it's not single security risk.
There's a few simple rules basically you can teach and people can educate.