Trading 212 and Vanguard Portfolio Update and Buys - October 2025
Audio Brief
Show transcript
This episode reviews September market performance, portfolio insights, and a deep dive into Adyen's investment thesis.
There are three key takeaways from this discussion.
First, invest with patience in quality companies. Despite short-term stagnation, a strong business can perform well over the long term. For example, semiconductor firm ASML jumped 24% after years of flat performance, underscoring the value of patience.
Second, implement a core-satellite portfolio for balanced growth. Anchor investments in globally diversified, low-cost index funds for stable, long-term returns. Allocate smaller 'satellite' portions to individual growth stocks with high conviction.
Third, identify businesses with strong competitive moats. Adyen exemplifies this with its unified payments platform. This platform creates high switching costs and delivers superior consolidated data, making it difficult for competitors to replicate.
These insights offer a strategic framework for navigating market dynamics and building a resilient investment portfolio.
Episode Overview
- This episode provides a comprehensive review of the stock market's performance in September, including key economic drivers and major company news.
- The host breaks down her personal investment portfolio's performance, highlighting the month's biggest winners and losers.
- She shares the specific investments she made during the month, detailing how she allocated £2,500 across her pension and Stocks & Shares ISA.
- The video concludes with a deep dive into the fintech company Adyen, explaining its business model, competitive advantages, and why she is investing in it for the long term.
Key Concepts
- Market Performance: September, historically the worst-performing month for the S&P 500 (dubbed "SeptemBEAR"), saw positive returns this year. The global stock market rose by 3.2%, and the S&P 500 was up 3.7%.
- Economic Drivers: The primary driver for market gains was the US Federal Reserve's decision to cut interest rates by 25 basis points, with signals of more cuts to come. This was prompted by a weaker labor market, though concerns about inflation and tariffs remain.
- Major Company News: Intel's stock surged approximately 40% after the US government and Nvidia announced significant investments, boosting confidence in the ongoing AI boom.
- Portfolio Winners: The host's top-performing stocks included ASML (+24%), driven by increased demand for its chip-making machines, and Alphabet (+20%), as regulatory fears eased and its position as an AI leader strengthened.
- Investment Strategy: The host follows a core-satellite strategy, investing the majority of her funds into a globally diversified, low-cost index fund (the "core") and smaller amounts into individual high-conviction stocks (the "satellites") like Mercado Libre, Adyen, and Games Workshop.
- Adyen's Business Model: Adyen is a Dutch payments company that stands out due to its unified, single-platform solution. This allows global businesses to process payments seamlessly across online, in-store, and mobile channels, creating high switching costs and a strong competitive advantage.
Quotes
- At 00:38 - "It even has its own cringey nickname: SeptemBEAR." - explaining September's historical reputation as the worst month for the stock market.
- At 03:17 - "For me, this is a reminder that sometimes with quality companies, you just have to be patient." - reflecting on the stock ASML, which saw a 24% jump after years of stagnant performance in her portfolio.
- At 08:23 - "And that's precisely their moat. It's not that nobody else can do payments, it's that few can do all payments this seamlessly." - summarizing the core competitive advantage of the fintech company Adyen and its unified platform.
Takeaways
- Be patient with high-quality companies; it can take years for a catalyst to emerge and for the market to recognize the company's true value, as seen with ASML.
- Diversification works both ways; while a well-diversified portfolio might not capture the full upside of the best-performing index, it also protects you from being over-exposed to the poor performance of a single stock.
- Focus on a company's long-term competitive advantage (its "moat") rather than short-term price movements or negative headlines, as fundamental strengths are what drive sustainable growth.
