Who wants to be an ISA millionaire?

EQi has more than 50 customers with ISA portfolios who have passed the £1 million mark.

ISA savers who want to follow suit and join the growing number of ISA millionaires might be curious to know how it’s done.

We spoke to one EQi customer, Brian*, 59, from London, about how he has built a portfolio worth over £1 million in his Stocks and Shares ISA.

Tell us about yourself

I am retired from my profession in the investment banking software industry but still work part-time to keep busy. I first learned about investment management when I moved to the City of London and did an MBA. I take a keen interest in my portfolio in which I’ve been saving for an early retirement. I really enjoy it too – especially when I get it right.

Why do you invest through ISAs? 

As ISA investments are sheltered from UK income tax and capital gains tax, apart from the invaluable tax saving, it seriously cuts down paperwork – something I try to keep to a minimum.

I like to invest in stocks that pay dividends and so the tax saving on such payments is important to me.

I take a keen interest in my portfolio in which I’ve been saving for an early retirement. I really enjoy it too – especially when I get it right

What is your investment strategy?

I mainly like to invest in stocks. Occasionally I buy investment trusts as they offer global exposure and are more liquid than unit trusts. I don’t own any at the moment but might get back into them should the UK hit a downturn as they provide a great degree of diversification.

I’ve never relied on a financial adviser to provide me with advice on my investments. I prefer to run my own portfolio - I’ve always done my own research.

I like to read a lot to help me keep on top of what’s going on and where the opportunities lie. I read the Financial Times and other publications such as the Investors Chronicle to help with my search for new investment opportunities.

What criteria do you use to choose stocks? 

There are a few rules I usually stick to. I only invest in UK-listed stocks. It keeps things simple, avoids any currency risk and keeps dealing costs down. I like to back smaller companies launching new ideas that can really change things – mostly in the technology sector as that’s where my interests are.

I am interested in internet companies and any firm offering a new and exciting product that promises to change things - known as the disruptors.

Using this criteria I realise that I have missed out on the big US stocks such as Apple. But I’m happy with my choices.

However, I’ve been stung in the past by investing in what looks like a great idea, but ends up not making any money. Before I invest, I now like to make sure I can see results in terms of that the company has progressed and is making money. I’ll compare share prices to the company forecasts and make a call.

I have occasionally invested in some blue chip stocks such as Barclays and British Airways for diversification and also because prospects looked good at the time. Share prices went down during the crisis, and I may go back in again should prices fall.

Read more

Brian talks us through the high and low points of his time as an investor and shares his tips on how he made a £1 million ISA portfolio.

Tips from an ISA Millionaire