15 Ways to Grow Your Portfolio in 2021 and Beyond

It’s been a whirlwind year and a half for investors, and the market continues to deliver its fair share of volatile days. While the current rate of inflation is behind some of the recent volatility, long-term investors also know that ups and downs are a regular part of a cyclical market, and it’s totally possible to continue generating portfolio growth in an extensive range of market conditions.

To that end, here are 15 easy ways to grow your portfolio in 2021 and beyond.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

There is no such thing as a completely bulletproof stock or stock portfolio, and there’s no fundamentally right or wrong time to invest. You can construct a rock-solid basket of high-quality stocks that drive robust portfolio growth and help you achieve more wins than losses over your investing journey, while still noting fluctuations in your portfolio.

Both highs and lows of the market carry with them unique investment opportunities.

For example, at the height of a bull market, your portfolio could see impressive gains while many stocks trade at record valuations. And when the market is down, investors can seize the opportunity to buy top stocks on sale.

Investing regularly in excellent companies -- rather than trying to invest around what the market is doing on a given day, week, or month -- will help you build a more well-rounded basket of stocks that is better primed to withstand volatility and deliver durable long-term returns.

ALSO READ: The Smartest Stocks to Buy With $500 Right Now

If you want to drive your portfolio to achieve new levels of growth this year and in the years to follow, one of the easiest ways to chip away at this goal is to panic sell your holdings when the market turns volatile or crashes. Besides the very real prospect that you’ll lose money, you could also forfeit future portfolio gains when the market bounces back.

Except for very specific circumstances -- such as if you really could use the cash or your assessment of the business as a whole has changed -- you shouldn’t join the mass mania of investors selling stocks when things get rocky in the market.

Another way to build a market-beating portfolio is to ensure your holdings are well diversified. The way in which you diversify your assets is completely personal to you.

There are many different types of investments that you can use to construct a winning portfolio, including growth stocks, value stocks, dividend stocks, bonds, and real estate investment trusts (REITs), to name a handful among a broad range of choices.

Understanding your personal level of risk tolerance is key to building a basket of investments that lives up to the individual intentions and strategy you’ve outlined for your portfolio.

For example, stocks in the healthcare and consumer staples sectors, as well as blue chip companies, are just a few popular choices that more conservative investors tend to gravitate toward. Conversely, the best electric vehicle stocks and artificial intelligence stocks are often more speculative investment options that can carry significant upside potential and make a valuable contribution to a well-balanced portfolio.

Your propensity for risk is personal to you and will help you determine the right mixture of stocks and stock sectors to invest in while you pursue your long-term investment goals.

ALSO READ: 3 Great Stocks You Can Buy on Sale

There are many strategies that long-term investors can leverage to build a winning portfolio. Some investors prefer to focus mainly on growth stocks, while others like companies that seem to be undervalued by the market at large despite their long-term growth trajectory. And there’s no shortage of investors who choose to focus on income stocks with solid businesses that pay consistent dividends.

The strategy you choose is up to you. It’s also worth noting that a company can qualify as a solid growth play and also be a value stock, or be both a growth stock and dividend stock, and so on.

Investing in a healthy blend of growth, value, and dividend stocks can help you build a rock-solid portfolio ready to withstand a range of challenging market conditions.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

It's vital to always do your research before investing in a stock. After all, when you buy a stock, you're becoming part owner of that company. And as a long-term investor, you're also planning on holding that stock for years to come. Taking the time initially to do adequate research on a potential stock buy can reap generous rewards down the road and help you avoid investing missteps.

If you want to consistently pump new catalysts for growth into your portfolio, it’s going to be tough to do so if you have a ton of high-interest debt looming over your head. You certainly don’t have to be totally free of debt to invest.

However, if you have tremendous debt that is impacting your ability to invest consistently, it may be wise to work on paying this down first before you expend the cash reserves you do have on more stocks.

Speaking of cash reserves, you should always have a nest egg set aside for emergencies -- preferably several months of expenses in case of any unexpected life event. At the same time, it’s important to build up your savings apart from your nest egg.

If you don’t have a nest egg or robust savings and an emergency strikes or another recession hits, you might be forced to dip into your investments to access some cash and sell at a loss. Low liquidity can also impede you from investing consistently.

In short: Saving and investing are both vital to your financial health and can help you achieve long-term wealth building.

ALSO READ: 3 Stocks to Double Your Returns in the Next 5 Years

Exactly how many or how few higher-risk investments you want to own is likely to change as the years go by. You might be the type of investor who wants to build your portfolio mostly around low-risk buys, or perhaps you like to incorporate a mixture of high-quality stocks with a few more speculative investments.

Don’t hesitate to assess and occasionally reassess your risk tolerance as you continue to build and grow your portfolio.

When you diversify your portfolio across several different sectors, you can better insulate your holdings in turbulent market times by ensuring that you’re not overly dependent on a single investment to drive your returns.

In addition to buying a variety of individual stocks, one of the quickest ways to diversify your holdings with even a relatively low initial investment is to put your money into different types of funds. These give your portfolio instant exposure to all types of asset classes and industries. For example, index funds, exchange-traded funds (ETFs), and mutual funds can all be valuable additions to a well-rounded portfolio.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

As a long-term investor, it’s important to do your homework before you buy a stock to ensure the company is the right fit for your portfolio and long-term financial goals. Investing in stocks doesn’t have to be complicated, but it’s crucial that you understand the crux of a company’s business before you buy in.

There are an abundance of high-quality stocks ripe for the picking, so if you’re struggling to wrap your head around a potential investment or just don’t find it all that interesting, don’t be afraid to select another company that you’re more interested in, understand, and believe is a better long-term addition to your portfolio.

When you’re researching a stock, besides reviewing important factors such as its balance sheet and financial history, you should also look at nonnumerical catalysts for the company’s long-term growth, such as the competitive advantage of its business.

A company’s past performance isn’t in and of itself an indicator of a future success, but it can help you assess the durability of a stock’s competitive position in the marketplace or marketplaces in which it operates, along with existing consumer demand for its brand.

ALSO READ: 3 Inflation-Proof Dividend Stocks to Buy Today

When you’re buying a stock with the intention of holding it for years, bumps in the road are a normal part of investing. In fact, the only way you’ll actually lose money when the market is particularly volatile is if you rush to sell a stock because other investors are panicking.

Investors can’t stop talking about another market crash. Whether another one is just around the corner is uncertain, but it’s safe to say that at some point, the market will turn south again.

The best way to keep your portfolio on track when that happens is to stay the course and keep investing in high-quality companies that can contribute long-term growth and value to your portfolio.

High-quality companies with robust businesses, strong noncyclical demand for their products/services, and solid financials are the kind of investments that can help your portfolio weather tumultuous market periods. These can also help you to neutralize the impact the more volatile stocks in your portfolio might have in rocky market situations.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

When the market is volatile, investors naturally get antsy. The good news is, long-term investors don’t need to be concerned when the market experiences interim bouts of volatility.

Even if the market crashes again in the near future, that doesn’t mean you should change your long-term investment strategy or join the mass stock sell-off that will inevitably ensue.

Remember that crashes are an expected event in various cycles of the stock market. In the meantime, keep investing in top stocks and boosting your emergency fund for the next market storm. To quote Warren Buffett: “When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.”

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