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Old 01.12.2020, 22:01
Polymath Polymath is offline
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Equity Portfolio Advice

Hello fellow investors,

Firstly, I would like to thank fatmanfilms, Phil_MCR, EPMike, HickvonFrick, Urs Max & many others for the financial knowledge that you have kindly shared on this forum. I have lurked here for quite some time and managed to glean a lot of valuable information.

I would be grateful now for some specific advice on my current and future portfolio. In the last few years since arriving in Switzerland I have worked to improve my financial IQ. The crash in February/ March was really the catalyst that kicked me into action and finally got me to open an Interactive Brokers account (my partner also opened an account). I also setup an account with Fundsmith UK. Until this point I focused on minimising and optimising expenses to save as much as possible.

I think like many of you (and Terry too) Iíve been a bit surprised by the ferocity of the recovery. I recall fatmanfilms you mentioned earlier in the year that you planned to be a net buyer of stocks for the foreseeable future but more recently I saw you comment that you are now holding around two years of expenses in cash.

I understand that all in at once beats a DCA approach approximately two thirds of the time but I think I can be forgiven for thinking that after a long bull run and with such uncertainty a DCA approach may be better (also as a new investor a bit easier to stomach).

Anyway, Iím in the market now and Iím in it for the long term. Iím building my positions and would greatly appreciate your advice as Iím somewhat conflicted by Buffettís/ Terryís advice to the majority of investors, ie buy a low-cost index fund and what seems to be espoused in these pages, ie more stockpicking, buying quality etc.

Current positions:

VT, VTI, VEA, VWO, VSS, BRK.B, SSON & Fundsmith

Partnerís positions:


If I understand correctly, SSON and Fundsmith should be held 65%/35% respectively.

Iím leaning towards 50% index funds and 50% SSON & Fundsmith. Iím not sure about keeping BRK.B but I took a position in the belief that it would fare well in a bear market (which we exited rather quickly!).

I switched from buying VT in my account to VTI, VEA and VWO on recommendations from others elsewhere to save a little on fees and also to have slightly broader diversification. So far we stuck with VT in my partnerís account for simplicity but to be frank my strategy here is a little confused. What concerns me a little is index funds have been somewhat derided on this forum.

Phil_MCR, I think it was you that commented that these funds have had such large inflows in the last decade and this perhaps doesnít bode well for the future. My research led to the conclusion that there is no index fund bubble and these inflows do not drive price discovery in a significant way but maybe this is wrong. Another comment you made which impressed me was your dismissal of VWO as an option for EM as you could construct something similar yourself but without the fees (I believe this was in the discussion of FEET). I sense youíre a much more sophisticated investor than the average. I too would love to be able to pick winning stocks with conviction but Iím not an accountant and so far Iíve been led to believe that this skillset is a prerequisite for such an endeavour.

With this info in mind I would really appreciate feedback on current positions and suggestions on how to move forward including percentage allocations etc. A couple of additional points about me: 34, living with partner (Swiss, sheís a few years older), dual income and no kids. The plan is to have something like a 95% equity and 5% cash allocation. Still sitting on a chunk of cash in addition to monthly savings.

Many thanks for reading and looking forward to your comments.
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