Elsewhere, I was pondering a hypothetical situation where I would have to leave my investments entirely to their own devices for a couple of years. I mean, I wouldn’t be able to manage them, check their values, or anything like that for two years.
My portfolio would be very different in such a situation than it is now. Firstly, I would completely abandon direct stock investments, because anything can happen to any company in a couple of years (acquisitions, spin-offs, redemptions, etc.). So, I’d go with funds / ETFs. As Warren Buffett advised, I would keep a pretty big weight in the United States, plus a couple of active funds whose investment style suits me over a longer time horizon. Concretely, my portfolio would look like this:
S&P500 index fund / ETF
US small-cap index fund / ETF
Seligson Phoebus fund
PYN Elite fund
I would go with these; I could do nothing for several years, I wouldn’t even need to look at their values for a couple of years. If I wanted to play it really safe, I would replace those two active funds with some global ETF.
It’s interesting to think how simple a solution one would end up with if one were truly passive
This was a small playful thought experiment but quite an interesting brain exercise. Has anyone else ever thought about this from this perspective?
Good pondering… …the philosophy of investing and the meaning of life seems like a good topic… …in both, tangibility is key, or you’ll end up with castles in the air and houses of cards
Spiltan Aktiefond Investmentbolag - 16.6%
Swedbank robur smabolagsfond - 16.6%
Tin Ny Teknik - 16.6%
JPM US Technology - 16.6%
Handelsbanken USA indeksi - 16.6%
Handelsbanken Kestävä energia - 16.6%
The US stock market rally has been strong in recent years. Now, unfortunately, it’s time for the emperor’s new clothes to be revealed. P/B and P/E ratios in the US are already at such levels that they must predict either the second coming of Jesus or a major collapse. Juurikki predicts the latter. According to Eastern philosophy, what goes up must come down. The era of negative interest rates will also eventually end due to its own impossibility.
Fortunately, there is only a small stock bubble in Finland – relatively speaking, that is. I urge you to examine the aforementioned key figures, growth potential, and risk, for example, the targets of loans granted in the case of banks. What would Juurikki buy? Tips given, gvi.
The simplest “buy and forget” portfolio would be:
100% Vanguard FTSE All-World UCITS ETF - Dist (VGWL)
The ETF covers the entire world, including emerging markets.
You could hold this until death and even leave it to future generations.
This income-distributing ETF is very tax-inefficient, but a small cash flow (quarterly) would be nice, and depending on the investment’s value, you might not need to “kill the cash cow” in retirement.
If you don’t want cash flow and want to enjoy the power of compounding, then:
100% Vanguard FTSE All-World UCITS ETF (VWCE).
