Reply to: Passive investing a.k.a Rate My Portfolio :)

[rl4engc]

I have
50% : Vanguard Lifestrategy 100%
50% : Fundsmith Equity

Simples.

That Fundsmith one is rated #1 on M* Global Large Cap, does look good but I'm 100% passive. £10k invested in Nov 2010 would now be worth £33.1k, compared to £22.46k for Vanguard FTSE Developed World ex UK Equity Index A. :|

Food for thought indeed!

[diseasex]

You guys need to keep an eye on this thread:

http://forums.contractoruk.com/gener...ml#post2427252


Invest in Crypto you get %2000 returns...

Yes make 2000 out of your 100000

[Drei]

You guys need to keep an eye on this thread:

http://forums.contractoruk.com/gener...ml#post2427252


Invest in Crypto you get %2000 returns...

[chopper]

I have
50% : Vanguard Lifestrategy 100%
50% : Fundsmith Equity

Simples.

[rl4engc]

P/E ratios (profit to earnings) are at an all time high. The major economies are rather stagnant. We're due a crash soon.

Read the Financial Times for company analysis. There are such a plethora of over-valued companies that this is unsustainable. Invest in cash savings for a year and pump the money in when the time suits.

This is all fundamental analysis/active trading. I don't have the time, ability or inclination to go researching individual companies. I know I'll never have 'Edge' and beat the market, the price of an asset is reflected in all the combined knowledge of that asset. That's why I do passive trading; invest, forget, rebalance and invest.

Waiting for a crash is also fruitless, I saw a graph once of all the US bull markets since 1900, the bull market now is nowhere near as high as some of the past ones so this ride could continue for some time yet. When there is a crash I'll be buying up all the cheap stock for when the recovery comes.

[Waldorf]

I will live off the income not the capital so a slump in the asset value doesn't worry me. Long term I have concerns over government debts, all governments, so I will avoid.

ETF's are lower costs, simple as that. I only go for ETF's that physically replicate their index and all but one are in Vanguard ETF's.

[contractorinatractor]

P/E ratios (profit to earnings) are at an all time high. The major economies are rather stagnant. We're due a crash soon.

Read the Financial Times for company analysis. There are such a plethora of over-valued companies that show that the current situation is unsustainable. Far too many low quality companies, with little or no profit, gaining a high share value. Invest in cash savings for a year and pump the money in when the time suits.

[rl4engc]

Good discussion,


@IR35 Avoider

Yep I think long term, small cap can give better returns, so for my UK exposure (whilst not strictly small cap) I opted for the 250.

I'll look into ETFs again, I forget the reason I discounted them initially, I think they were more complex when it came to accounting or something i.e. reinvesting the dividends?

@Paddy

Wanking at work won't make me rich in retirement, besides I've got a housemaid for that.

@Cirrus

I suppose what I'm saying is there's long term (100+ years in the case of UK) evidence to show that equities outperform all other asset classes, so whilst I'm at the beginning of my investment career (mortgage is paid off and have 1 BTL) I don't mind the choppyness this will inevitably have. Longer term I'll start to diversify in to less volatile ones. Commodities is supposed to be good for ~5% gains but also uncorrelated, however it's not something I've researched yet. Not sure I fancy investing in cattle or timber.

@DimPrawn

All those funds are trackers and generally ~0.2-0.38 with the exception of the L&G ones, however I need to look into these as the ones on Lloyds/Halifax are 1.16%, but another version (not available on Lloyds/Halifax) is just 0.32%, so I'm not sure if I get a rebate etc.

Yes Bitcoin returns have been amazing, I read somewhere if I'd have bought $70 worth in 2012 I'd be a millionaire on paper now. :O

Mines paid off but houses aren't liquid. I would toy with the idea of buying a plot of farmland for ~£10,000, fighting to get planning permission on an Eco-house (I forget the details but you can get the planning dept over a barrel so they have to if certain conditions are met), then getting it built at a cost of ~100,000 and the end result would be worth ~600,000.

When Leonardo DiCaprio looks round in that scene he was actually genuinely wondering what was going on, but they decided to leave it in (source IMDB)


@motoukenin

Reason I went Pharms is they basically seem to have a licence to print money. Example, Omezaprole is a generic drug, costs pennies (well should do) The makers of Nexium basically made a chemical mirror image of it and called it "Esomeprazole", got it through testing so it can be bought OTC and they charge £12 for 14 tablets. Not ethical but hey, if I can make money on their coat tails.

@Waldorf

What are the downsides of an ETF over a fund? I'd move away from 100% Assets nearing retirement as I wouldn't want my purchasing power then to drop 20% in the event of a slump, at that point you just want it to coast along so I'd look at government bonds, but I've not researched these.

@lukemg

Yes the LS funds were my starting point, but then I started looking at 10 year returns on M* and Trustnet and FT and it gets a bit immersive. I went for a lower UK exposure, I think the UK accounts for 7% of worldwide capital so 25% seems a bit imbalanced?

@diseasex

Where you do pick your percentages from? Mine roughly follow where the global capital is, but a few tilts to make it more interesting. USA is approximately 61% of global capital I think.

Your Jupiter India beats my Blackrock Emerging Markets.

@Jog On

Are those managed funds? (Robotic etc.)

[diseasex]

Aviva Inv European Equity Class 2 - Accumulation (GBP) 25%
Baillie Gifford European Class B - Accumulation (GBP) 25%
Fundsmith Equity Class I - Income (GBP) 25%
Jupiter India 25%

[Jog On]

I'm also in these 2:

GB00B84DY642 BlackRock Emerging Markets Equity Tracker D Acc
GB0001955755 L&G Global Technology Index Trust I Acc

Others are Gold/precious metals, Robotics and BRICS. Looking to get into biotech as well.

The one that's doing the best by far is the robotics fund...

[diseasex]

I invest depending on circumstances. Low rates currently so only equity.
India 25%, 50% EUROPE, 15% uk and rest USA

[lukemg]

Looks fine to me too, as ever, beware the charges and over complication for the sake of it.
Mine is all over the place due to some legacy decisions but I would happily go all in on the Lifestrategy 80 fund on the new Vanguard site and top up monthly.
They rebalance constantly so you don't have to think about it, massive global diversification, 25% UK (which is your home currency so not a bad idea) and low costs - job done...

[DimPrawn]

How the real money is made.

[AtW]

Why leave equities as you get older? I'm going to stay in them, no faith in bonds long term.

I find your lack of faith disturbing.

[Waldorf]

I prefer Vanguard ETF's but not FTSE100, I use a couple of investment trusts for that coverage, City of London & Edinburgh IT. FTSE100 too concentrated on a few big companies. I also use Vanguard ETFs for exposure to the S&P500, advanced Asian economies and the better European companies.

Why leave equities as you get older? I'm going to stay in them, no faith in bonds long term.