There’s always a tension in investing between doing things properly for the long term, and the temptation to pick individual stocks and try to outperform. To explore this, we ran a simple experiment with the Nisba community.
We asked people to choose one halal stock they believed would perform best over 30 days, and we backed those ideas with £20,000 of real capital. The goal wasn’t just to see who would win, but to understand what actually happens when you rely on individual stock picking.
One of the first challenges we ran into was defining what actually counts as “halal.” In reality, it’s not always clear-cut. Different screening providers often come to different conclusions on the same company. A stock might pass one screening standard and fail another. For the purpose of the challenge, we took a practical approach and accepted any stock that passed at least one recognised screening platform, such as Zoya or Musaffa, or appeared in a Sharia-compliant fund. At the same time, it was clear that many investors are now thinking beyond just financial ratios, with ethical considerations and boycott-related concerns increasingly shaping decisions as well.
When we looked at the picks, there was a clear pattern. The community naturally gravitated towards technology, particularly companies linked to AI and semiconductors. Nvidia was by far the most popular choice, with a large number of submissions, followed by names like TSMC, Broadcom and AMD. There were also a handful of higher-risk picks, including crypto-related companies and mining stocks, reflecting a desire among some participants to chase more volatile opportunities.
The results over the 30 days were a strong reminder of just how unpredictable individual stocks can be. Some performed exceptionally well. Micron Technology, for example, delivered a return of around 40% in a single month, with IREN not far behind at over 35%. But on the other side, there were significant losses. One stock fell by more than 50% after a failed FDA approval, showing how quickly things can move against you when you are concentrated in a single name.
Despite these big individual swings, the overall portfolio told a different story. Because the £20,000 was spread across a wide range of stocks, the final result was relatively stable, ending the month at around £20,600. The gains and losses largely balanced each other out. Even with strong opinions and active selection, the portfolio ended up behaving quite similarly to the broader market.
That in itself is an important lesson. Diversification doesn’t eliminate risk, but it smooths the journey. It reduces the impact of any single mistake and makes outcomes far more predictable over time.
The challenge was a great way to engage the community, but it also reinforced something we come back to often. Investing isn’t about winning in a 30-day window. It’s about building something sustainable over years and decades. Trying to pick the next winning stock can be appealing, but it also comes with a real risk of getting it wrong.
For most people, the better approach is to focus on building a diversified portfolio that aligns with their goals, their time horizon, and their values. That’s where real progress is made.
If you’re looking to move beyond guesswork and understand how to build a proper halal investment plan, you can explore the full framework by viewing the nisba academy.
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