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Old 22.01.2021, 19:29
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Re: Equity Portfolio Advice

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Besides the anecdotal evidence that every fund manager can fail (and therefore we limit exposure and diversify), what are you trying to suggest?
Not every fund manager. But pretty much every investor.

equity-portfolio-advice-screenshot-2021-01-22-18.03.51.png

- The average investor lost money in the Fidelity Magellan fund under Peter Lynch’s tenure during a period of time when the fund returned around 29% annually => DCA does not really work for the average investor.
- Of the 123 stock funds that gained 100%-plus between 1990 and 2016, just 24 made money in the three years following their big gain, with the average fund losing around 17% per year => Odds are not on your side.
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  #282  
Old 22.01.2021, 19:38
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Re: Equity Portfolio Advice

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Not every fund manager. But pretty much every investor.

Attachment 141160

- The average investor lost money in the Fidelity Magellan fund under Peter Lynch’s tenure during a period of time when the fund returned around 29% annually => DCA does not really work for the average investor.

Thats why you need to stay invested & not time the Market. Anybody who at the beginning of January realised there would be a huge fall & then sold Fundsmith would be 18% worse off in £ than today!
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  #283  
Old 22.01.2021, 20:27
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Re: Equity Portfolio Advice

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Thats why you need to stay invested & not time the Market. Anybody who at the beginning of January realised there would be a huge fall & then sold Fundsmith would be 18% worse off in £ than today!
Do people actually sell their large equity portfolio and try to get back in? That's like going to the casino, but with the odds even more stacked against you.
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  #284  
Old 22.01.2021, 21:38
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Re: Equity Portfolio Advice

Trying to time stock markets is a mugs game and likely to end in tears!
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Old 23.01.2021, 11:27
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Re: Equity Portfolio Advice

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Do people actually sell their large equity portfolio and try to get back in? That's like going to the casino, but with the odds even more stacked against you.
Says the man who has been trading in & out of PHI for a 10% profit
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  #286  
Old 23.01.2021, 16:18
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Re: Equity Portfolio Advice

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Says the man who has been trading in & out of PHI for a 10% profit
But I wasn't leaving anything in cash and this was fun money - like £20k.
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  #287  
Old 23.01.2021, 18:36
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Re: Equity Portfolio Advice

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But I wasn't leaving anything in cash and this was fun money - like £20k.
For me, there’s no such thing as fun money.
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  #288  
Old 23.01.2021, 18:38
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Re: Equity Portfolio Advice

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For me, there’s no such thing as fun money.
You should have been a Lawyer they earn mega bucks
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  #289  
Old 23.01.2021, 19:05
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Re: Equity Portfolio Advice

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You should have been a Lawyer they earn mega bucks
Meh sadly not - I'm pretty junior.

Started work in 2014
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  #290  
Old 23.01.2021, 19:40
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Re: Equity Portfolio Advice

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Meh sadly not - I'm pretty junior.

Started work in 2014
You are clearly 'top lawyer' material, partners in London top firms earn £500k - to a Million plus, I have no doubt you will be in that league, you ay have to return to the UK at some point as top Swiss pay can be disappointing.
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Old 23.01.2021, 21:18
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Re: Equity Portfolio Advice

For me, every franc is of equal value and importance.

I don’t put them in different spending buckets, like household, or entertaining, or fun - which might tempt me to think of Swiss francs in one bucket as less important, or valuable than those in another.

I do budget of course, and invest differently, to diversify and to meet my risk profile.
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  #292  
Old 23.01.2021, 21:24
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Re: Equity Portfolio Advice

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warren buffett responded jeff by saying, “because nobody wants to get rich slow.”
I think he's said something similar a few times. I saw a YouTube video years ago when he was addressing a group of students. One of them asked him, to much laughter, "Mr Buffett, how can I get rich quick?" To even more laughter, Buffett replied, "People who want to get rich quick never get rich at all. What's wrong with getting rich slowly, like I did." Not sure if this predated the Bezos exchange.

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thats why you need to stay invested & not time the market. Anybody who at the beginning of january realised there would be a huge fall & then sold fundsmith would be 18% worse off in £ than today!
I hate to question the great FMF on the topic of Fundsmith but is that true? Maybe it's a currency adjustment. From what I can see Fundsmith has stayed the same over 4 weeks, and actually gone down since the start of January.

equity-portfolio-advice-fundsmith.gif

Frankly, I've become a little impatient with Fundsmith over the past few months but only because I've been spoilt by Terry Smith over the past 5 years or so. I haven't sold any Fundsmith but just at the moment I'm not buying more.

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do people actually sell their large equity portfolio and try to get back in? That's like going to the casino, but with the odds even more stacked against you.
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trying to time stock markets is a mugs game and likely to end in tears!
Very frequently heard sentiments, and I'm not going to tell you this is bad advice. In fact it seems perfectly logical IF you're fairly young with many years of investing ahead of you. Just keep a cool head and keep investing through the bad times. It's not my current approach though. I plan to retire in a year or two and am being quite aggressive with my decisions. Of course, I realise that I should be switching into bonds and other rock solid, dependable investments that'll preserve my capital. But I'd prefer to take some risks -- and so far so good.

I did sell most of my investments at the start of the lockdown in March. The global news suddenly seemed to get worse and when the markets dropped 2 or 3% two days in a row, it was time to get out. Apart from Fundsmith and Vanguard Lifestrategy, I sold most of my funds before the really big drops. The problem is always when to buy back in. If you leave it too long you miss out on the recovery. With all the remote working going on I bought into several technology funds which did really well, and have been steadily buying China and the Baillie Gifford global funds since the summer.

I won't pretend I have any special insight, and TBH I've been pretty lucky -- something far more valuable than brilliant analysis. But I do think there's something to be said for so-called momentum investing. I spend £30 a month on a service that does a lot of the analysis for me, and produces a ton of tables showing trends over 4, 12, and 26 weeks. It's not foolproof but if a certain fund or sector has been in the first or second decile for quite a period of time, it's usually worth a punt. I'm definitely not telling other people to do the same. Like a lot of things in life, you have to figure out what works for you.
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  #293  
Old 23.01.2021, 21:33
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Re: Equity Portfolio Advice

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I think he's said something similar a few times. I saw a YouTube video years ago when he was addressing a group of students. One of them asked him, to much laughter, "Mr Buffett, how can I get rich quick?" To even more laughter, Buffett replied, "People who want to get rich quick never get rich at all. What's wrong with getting rich slowly, like I did." Not sure if this predated the Bezos exchange.


I hate to question the great FMF on the topic of Fundsmith but is that true? Maybe it's a currency adjustment. From what I can see Fundsmith has stayed the same over 4 weeks, and actually gone down since the start of January.

Attachment 141167

Frankly, I've become a little impatient with Fundsmith over the past few months but only because I've been spoilt by Terry Smith over the past 5 years or so. I haven't sold any Fundsmith but just at the moment I'm not buying more.





Very frequently heard sentiments, and I'm not going to tell you this is bad advice. In fact it seems perfectly logical IF you're fairly young with many years of investing ahead of you. Just keep a cool head and keep investing through the bad times. It's not my current approach though. I plan to retire in a year or two and am being quite aggressive with my decisions. Of course, I realise that I should be switching into bonds and other rock solid, dependable investments that'll preserve my capital. But I'd prefer to take some risks -- and so far so good.

I did sell most of my investments at the start of the lockdown in March. The global news suddenly seemed to get worse and when the markets dropped 2 or 3% two days in a row, it was time to get out. Apart from Fundsmith and Vanguard Lifestrategy, I sold most of my funds before the really big drops. The problem is always when to buy back in. If you leave it too long you miss out on the recovery. With all the remote working going on I bought into several technology funds which did really well, and have been steadily buying China and the Baillie Gifford global funds since the summer.

I won't pretend I have any special insight, and TBH I've been pretty lucky -- something far more valuable than brilliant analysis. But I do think there's something to be said for so-called momentum investing. I spend £30 a month on a service that does a lot of the analysis for me, and produces a ton of tables showing trends over 4, 12, and 26 weeks. It's not foolproof but if a certain fund or sector has been in the first or second decile for quite a period of time, it's usually worth a punt. I'm definitely not telling other people to do the same. Like a lot of things in life, you have to figure out what works for you.
You need patients, if your investment term is less than 10 years don't invest in Fundsmith. In good times all crap will go up & beat the good companies that Fundsmith invests in. It's about winning long term, not a few months investment. The defensive stocks Fundsmith invests in did not drop as much as the market in March so will underperform on the rebound. Market timing does not work, don't attempt to do it
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  #294  
Old 24.01.2021, 12:19
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Re: Equity Portfolio Advice

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With all the remote working going on I bought into several technology funds which did really well, and have been steadily buying China and the Baillie Gifford global funds since the summer.
Just out of curiosity, how do you invest in Baillie Gifford funds from Switzerland?
I have seen a page dedicated to "qualified investors", which I guess means very wealthy people.
Other options include platforms such as Investec or Mfex -- however I never heard about them.
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  #295  
Old 24.01.2021, 18:04
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Re: Equity Portfolio Advice

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Just out of curiosity, how do you invest in Baillie Gifford funds from Switzerland?
I have seen a page dedicated to "qualified investors", which I guess means very wealthy people.
Other options include platforms such as Investec or Mfex -- however I never heard about them.
Well the trusts are listed companies so can be bought anywhere.

HL will let you buy funds.
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  #296  
Old 24.01.2021, 18:14
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Re: Equity Portfolio Advice

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You are clearly 'top lawyer' material, partners in London top firms earn £500k - to a Million plus, I have no doubt you will be in that league, you ay have to return to the UK at some point as top Swiss pay can be disappointing.
That's very kind of you but sadly it would be unlikely to happen for me. Equity Partnership is all about attracting new clients and that's notoriously hard in my field and tbh I don't really have the people / schmoozing skills.

Realistically I'll probably top out at c. 250-300k chf at today's value. That's still a huge amount and I'd barely know what to do with it.

Last edited by HickvonFrick; 24.01.2021 at 18:27.
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  #297  
Old 24.01.2021, 18:31
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Re: Equity Portfolio Advice

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That's very kind of you but sadly it would be unlikely to happen for me. Equity Partnership is all about attracting new clients and that's notoriously hard in my field and tbh I don't really have the people / schmoozing skills.

Realistically I'll probably top out at c. 250-300k chf at today's value. That's still a huge amount and I'd barely know what to do with it.
For sure equity partners at Magic/ Silver Circle firms will pull in very juicy sums. The question is what do you have to give in order to make it.

Barristers don't do too bad either. I once chatted with a young Irish Barrister that had managed to secure chambers in London and she was earning around £350k.

I think fatmanfilms is spot on regarding salaries here. I chatted with a Swiss lawyer and she was shocked by how expensive barristers in the UK are (her firm needed representation for something). I don't know the numbers for the higher echelons but 300k is certainly very decent.
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Old 24.01.2021, 18:41
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Re: Equity Portfolio Advice

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For sure equity partners at Magic/ Silver Circle firms will pull in very juicy sums. The question is what do you have to give in order to make it.

Barristers don't do too bad either. I once chatted with a young Irish Barrister that had managed to secure chambers in London and she was earning around £350k.

I think fatmanfilms is spot on regarding salaries here. I chatted with a Swiss lawyer and she was shocked by how expensive barristers in the UK are (her firm needed representation for something). I don't know the numbers for the higher echelons but 300k is certainly very decent.
I'd find being a barrister or even a solicitor doing contentious work enormously stressful tbh. I'm quite happy getting paid a little less and not having to do (much) contentious work.
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Old 24.01.2021, 19:00
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Re: Equity Portfolio Advice

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I'm quite happy getting paid a little less and not having to do (much) contentious work.
Me too
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Old 24.01.2021, 20:23
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Re: Equity Portfolio Advice

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Just out of curiosity, how do you invest in Baillie Gifford funds from Switzerland?
I have seen a page dedicated to "qualified investors", which I guess means very wealthy people.
Other options include platforms such as Investec or Mfex -- however I never heard about them.
Mostly through my UK Hargreaves Lansdown account, but there's quite a range of BG funds available via SwissQuote too, including some in-form ones like Worldwide Long Term Global Growth, Positive Change, and the China funds.
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