Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation  
Reply
 
Thread Tools Display Modes
  #301  
Old 25.01.2021, 12:23
HIAO's Avatar
Forum Veteran
 
Join Date: Jun 2011
Location: Bellevue
Posts: 1,362
Groaned at 8 Times in 7 Posts
Thanked 3,491 Times in 978 Posts
HIAO has a reputation beyond reputeHIAO has a reputation beyond reputeHIAO has a reputation beyond reputeHIAO has a reputation beyond reputeHIAO has a reputation beyond reputeHIAO has a reputation beyond repute
Re: Equity Portfolio Advice

Quote:
View Post
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.
Move over to the client side.

And, if your people skills are not there yet, work on them.

A chief legal counsel at a multinational is frequently an excom role, and a total comp of 1m+ is possible. And, the well connected ones are in demand for non-exec roles too.
Reply With Quote
This user would like to thank HIAO for this useful post:
  #302  
Old 25.01.2021, 13:07
Forum Legend
 
Join Date: Jul 2020
Location: Frick, Aargau
Posts: 2,876
Groaned at 63 Times in 51 Posts
Thanked 4,070 Times in 1,901 Posts
HickvonFrick has a reputation beyond reputeHickvonFrick has a reputation beyond reputeHickvonFrick has a reputation beyond reputeHickvonFrick has a reputation beyond reputeHickvonFrick has a reputation beyond reputeHickvonFrick has a reputation beyond repute
Re: Equity Portfolio Advice

Quote:
View Post
Move over to the client side.

And, if your people skills are not there yet, work on them.

A chief legal counsel at a multinational is frequently an excom role, and a total comp of 1m+ is possible. And, the well connected ones are in demand for non-exec roles too.
Already have done!

Couldn't be a chief legal counsel as I am not a solicitor / general purpose lawyer. Nevertheless, there is scope for getting pretty high in my niche career. What's more I really love it.

Last edited by HickvonFrick; 25.01.2021 at 14:01.
Reply With Quote
  #303  
Old 02.02.2021, 14:20
Dack Rambo's Avatar
Forum Legend
 
Join Date: Mar 2010
Location: Switzerland
Posts: 3,006
Groaned at 208 Times in 127 Posts
Thanked 1,951 Times in 963 Posts
Dack Rambo has an excellent reputationDack Rambo has an excellent reputationDack Rambo has an excellent reputationDack Rambo has an excellent reputation
Re: Equity Portfolio Advice

I have 50,000 euro which I am now looking to invest and I have been reading this thread with great interest looking for guidance.
I am an owner occupier (in Germany) and will have my apartment fully paid off in 10 years from now. Also I hope to sell a holiday apartment in Spain in the next two years. That should net me about 200,000 euro which I also plan to invest.
I am 17 years from retirement.
I had been looking at ETFs but am considering Fundsmith given the many positive mentions it has received here. One thing that does concern me is the possibility of curreny fluctuation as I plan to live in a Eurozone country on retirement. Any recommendations on which investment strategy to follow?
Reply With Quote
  #304  
Old 02.02.2021, 14:58
Phil_MCR's Avatar
Forum Legend
 
Join Date: Oct 2009
Location: Basel
Posts: 14,776
Groaned at 284 Times in 189 Posts
Thanked 18,666 Times in 7,843 Posts
Phil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond repute
Re: Equity Portfolio Advice

Quote:
View Post
I have 50,000 euro which I am now looking to invest and I have been reading this thread with great interest looking for guidance.
I am an owner occupier (in Germany) and will have my apartment fully paid off in 10 years from now. Also I hope to sell a holiday apartment in Spain in the next two years. That should net me about 200,000 euro which I also plan to invest.
I am 17 years from retirement.
I had been looking at ETFs but am considering Fundsmith given the many positive mentions it has received here. One thing that does concern me is the possibility of curreny fluctuation as I plan to live in a Eurozone country on retirement. Any recommendations on which investment strategy to follow?
How much have you invested in the stock market already? How much experience do you have of investing in the stock market, esp. during downturns?

If very little, I would suggest to start small and build up gradually. Investing a large lump sum in a stock market that is volatile and richly valued is probably not a good place to learn what kind of investor you are. (Just as if you were learning to play poker for the first time, you wouldn't put in all your life savings in the first game - you'd start slow and small and learn before committing more as you get comfortable).
__________________
By replying to this post, you hereby grant Phil_MCR a royalty-free license to use, in any way, anything posted by you on the internet. If you do not accept, stop using EF and delete your account.
Reply With Quote
  #305  
Old 02.02.2021, 15:06
Forum Legend
 
Join Date: Jul 2020
Location: Frick, Aargau
Posts: 2,876
Groaned at 63 Times in 51 Posts
Thanked 4,070 Times in 1,901 Posts
HickvonFrick has a reputation beyond reputeHickvonFrick has a reputation beyond reputeHickvonFrick has a reputation beyond reputeHickvonFrick has a reputation beyond reputeHickvonFrick has a reputation beyond reputeHickvonFrick has a reputation beyond repute
Re: Equity Portfolio Advice

Quote:
View Post
I have 50,000 euro which I am now looking to invest and I have been reading this thread with great interest looking for guidance.
I am an owner occupier (in Germany) and will have my apartment fully paid off in 10 years from now. Also I hope to sell a holiday apartment in Spain in the next two years. That should net me about 200,000 euro which I also plan to invest.
I am 17 years from retirement.
I had been looking at ETFs but am considering Fundsmith given the many positive mentions it has received here. One thing that does concern me is the possibility of curreny fluctuation as I plan to live in a Eurozone country on retirement. Any recommendations on which investment strategy to follow?
It does not matter which currency your investment is held. What matters is the specific companies you own and more specifically where they do business.

For instance if the performance of a Euro dominated FS was +10% in a given year, and the Euro strengthened 5% against the pound in that year. The pound performance would be +15%.

I.e. if the pound sinks, you will just have more pounds.
Reply With Quote
The following 2 users would like to thank HickvonFrick for this useful post:
  #306  
Old 02.02.2021, 15:19
Senior Member
 
Join Date: Nov 2020
Location: Basel
Posts: 410
Groaned at 24 Times in 13 Posts
Thanked 661 Times in 265 Posts
Polymath has a reputation beyond reputePolymath has a reputation beyond reputePolymath has a reputation beyond reputePolymath has a reputation beyond reputePolymath has a reputation beyond repute
Re: Equity Portfolio Advice

Quote:
View Post
It does not matter which currency your investment is held. What matters is the specific companies you own and more specifically where they do business.

For instance if the performance of a Euro dominated FS was +10% in a given year, and the Euro strengthened 5% against the pound in that year. The pound performance would be +15%.

I.e. if the pound sinks, you will just have more pounds.
It's amazing how often this point comes up with the answer needing to be reiterated.

@Dack Rambo: this is not a criticism of your post I just see the point raised so often. In short, it's of next to no concern. I'd be more worried about holding currency and losing real purchasing power over the long term.

I am quite aggressively using a dollar cost averaging approach currently and working up to a 95%+ equities allocation. My reasoning for this is in part due to some of what Phil_MCR touches on and in the hope (and it is in all likelihood a faint hope) that there is a significant downturn and I can deploy the dry powder I have to snatch a few extra units than I could today.
Reply With Quote
This user would like to thank Polymath for this useful post:
  #307  
Old 02.02.2021, 15:26
Dack Rambo's Avatar
Forum Legend
 
Join Date: Mar 2010
Location: Switzerland
Posts: 3,006
Groaned at 208 Times in 127 Posts
Thanked 1,951 Times in 963 Posts
Dack Rambo has an excellent reputationDack Rambo has an excellent reputationDack Rambo has an excellent reputationDack Rambo has an excellent reputation
Re: Equity Portfolio Advice

Quote:
View Post
How much have you invested in the stock market already? How much experience do you have of investing in the stock market, esp. during downturns?

I have shares which I paid 2500 euro for 10 years ago, now worth about 1000 euro. So SFA basically.
Reply With Quote
  #308  
Old 02.02.2021, 16:00
Phil_MCR's Avatar
Forum Legend
 
Join Date: Oct 2009
Location: Basel
Posts: 14,776
Groaned at 284 Times in 189 Posts
Thanked 18,666 Times in 7,843 Posts
Phil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond repute
Re: Equity Portfolio Advice

Quote:
View Post
I have shares which I paid 2500 euro for 10 years ago, now worth about 1000 euro. So SFA basically.
The worst thing you could do is invest Ä250k in the stock market, see it crash to Ä50k and then sell out in a panic crystallising your losses.
Reply With Quote
  #309  
Old 02.02.2021, 16:06
jacek's Avatar
Forum Legend
 
Join Date: Oct 2007
Location: Aargau
Posts: 8,855
Groaned at 125 Times in 92 Posts
Thanked 6,571 Times in 3,638 Posts
jacek has a reputation beyond reputejacek has a reputation beyond reputejacek has a reputation beyond reputejacek has a reputation beyond reputejacek has a reputation beyond reputejacek has a reputation beyond repute
Re: Equity Portfolio Advice

Quote:
View Post
The worst thing you could do is invest €250k in the stock market, see it crash to €50k and then sell out in a panic crystallising your losses.
If you haven’t sold, you haven’t lost anything. Last week and this week, I saw correction of my stocks few thousand CHF, same with alt-coins fluctuating another few thousand. I didn’t even have an impulse to sell anything. On the contrary, I even added more positions.
Reply With Quote
  #310  
Old 02.02.2021, 16:11
Dack Rambo's Avatar
Forum Legend
 
Join Date: Mar 2010
Location: Switzerland
Posts: 3,006
Groaned at 208 Times in 127 Posts
Thanked 1,951 Times in 963 Posts
Dack Rambo has an excellent reputationDack Rambo has an excellent reputationDack Rambo has an excellent reputationDack Rambo has an excellent reputation
Re: Equity Portfolio Advice

At the moment I have 50,000. Spanish property is not likely to increase in the next few years so I am looking to sell but with the pandemic I will realistically need two years to complete a sale.


So are you suggesting I hold my cash and wait for a stock market crash?
Reply With Quote
  #311  
Old 02.02.2021, 16:12
Dack Rambo's Avatar
Forum Legend
 
Join Date: Mar 2010
Location: Switzerland
Posts: 3,006
Groaned at 208 Times in 127 Posts
Thanked 1,951 Times in 963 Posts
Dack Rambo has an excellent reputationDack Rambo has an excellent reputationDack Rambo has an excellent reputationDack Rambo has an excellent reputation
Re: Equity Portfolio Advice

Quote:
View Post
If you havenít sold, you havenít lost anything. Last week and this week, I saw correction of my stocks few thousand CHF, same with alt-coins fluctuating another few thousand. I didnít even have an impulse to sell anything. On the contrary, I even added more positions.

Yes, no losses as I am holding cash now. The question is what to do with it and when.
Reply With Quote
  #312  
Old 02.02.2021, 16:16
jacek's Avatar
Forum Legend
 
Join Date: Oct 2007
Location: Aargau
Posts: 8,855
Groaned at 125 Times in 92 Posts
Thanked 6,571 Times in 3,638 Posts
jacek has a reputation beyond reputejacek has a reputation beyond reputejacek has a reputation beyond reputejacek has a reputation beyond reputejacek has a reputation beyond reputejacek has a reputation beyond repute
Re: Equity Portfolio Advice

Quote:
View Post
At the moment I have 50,000. Spanish property is not likely to increase in the next few years so I am looking to sell but with the pandemic I will realistically need two years to complete a sale.


So are you suggesting I hold my cash and wait for a stock market crash?
Just if I may ask ... Why would you sell the Spanish property? Perfect for holidays once the pandemic subsides.

Do not invest under impulse because everyone else does right now and rather take your time and try to make a thoughtful and informed decision. Due diligence is more important than sentiments.
Reply With Quote
  #313  
Old 02.02.2021, 16:18
Dack Rambo's Avatar
Forum Legend
 
Join Date: Mar 2010
Location: Switzerland
Posts: 3,006
Groaned at 208 Times in 127 Posts
Thanked 1,951 Times in 963 Posts
Dack Rambo has an excellent reputationDack Rambo has an excellent reputationDack Rambo has an excellent reputationDack Rambo has an excellent reputation
Re: Equity Portfolio Advice

Quote:
View Post
Just if I may ask ... Why would you sell the Spanish property? Perfect for holidays once the pandemic subsides.

Too high running costs, and too much risk of break in or squatters. Also, I donīt go there enough to need a flat, Air BNB is a better alternative.
Reply With Quote
  #314  
Old 02.02.2021, 16:20
Dack Rambo's Avatar
Forum Legend
 
Join Date: Mar 2010
Location: Switzerland
Posts: 3,006
Groaned at 208 Times in 127 Posts
Thanked 1,951 Times in 963 Posts
Dack Rambo has an excellent reputationDack Rambo has an excellent reputationDack Rambo has an excellent reputationDack Rambo has an excellent reputation
Re: Equity Portfolio Advice

Quote:
View Post
Do not invest under impulse because everyone else does right now and rather take your time and try to make a thoughtful and informed decision. Due diligence is more important than sentiments.

The thing is that I have little idea about investment and am looking for advice. Longer term I want to protect my cash from inflation and try to make at least average stock market returns.
Reply With Quote
  #315  
Old 02.02.2021, 16:41
jacek's Avatar
Forum Legend
 
Join Date: Oct 2007
Location: Aargau
Posts: 8,855
Groaned at 125 Times in 92 Posts
Thanked 6,571 Times in 3,638 Posts
jacek has a reputation beyond reputejacek has a reputation beyond reputejacek has a reputation beyond reputejacek has a reputation beyond reputejacek has a reputation beyond reputejacek has a reputation beyond repute
Re: Equity Portfolio Advice

Quote:
View Post
Too high running costs, and too much risk of break in or squatters. Also, I donīt go there enough to need a flat, Air BNB is a better alternative.
Fair enough. Itís a headache to manage it but it may be well worth it one day.

Quote:
View Post
The thing is that I have little idea about investment and am looking for advice. Longer term I want to protect my cash from inflation and try to make at least average stock market returns.
Then itís better to reach out to financial advisor. However, if you have time and will, once you enter this fascinating world you wonít regret.
Reply With Quote
  #316  
Old 02.02.2021, 16:44
Phil_MCR's Avatar
Forum Legend
 
Join Date: Oct 2009
Location: Basel
Posts: 14,776
Groaned at 284 Times in 189 Posts
Thanked 18,666 Times in 7,843 Posts
Phil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond repute
Re: Equity Portfolio Advice

Quote:
View Post
If you havenít sold, you havenít lost anything. Last week and this week, I saw correction of my stocks few thousand CHF, same with alt-coins fluctuating another few thousand. I didnít even have an impulse to sell anything. On the contrary, I even added more positions.
It's one thing to be down a few thousand. Another thing to be down Ä100k+. As an untested investor, it is not clear how the OP would react in this scenario.
Reply With Quote
The following 2 users would like to thank Phil_MCR for this useful post:
  #317  
Old 02.02.2021, 16:47
Forum Veteran
 
Join Date: Jul 2007
Location: Lausanne
Posts: 541
Groaned at 7 Times in 4 Posts
Thanked 211 Times in 136 Posts
naza is considered knowledgeablenaza is considered knowledgeablenaza is considered knowledgeable
Re: Equity Portfolio Advice

Quote:
View Post
The thing is that I have little idea about investment and am looking for advice. Longer term I want to protect my cash from inflation and try to make at least average stock market returns.
If you are really starting but don't want to lose time start by 1) opening a broker account (plenty of recommendations here) and 2) buy something like VT ETF which is basically a basket of all world stocks so your risk exposure is very limited and it does perform OK (much higher than cash in the bank)

You can either do dollar cost average to spread the risk even further or buy in bulk - this depends on your appetite

Once you learn and figure out where to invest just adapt

Last edited by naza; 02.02.2021 at 16:52. Reason: typo
Reply With Quote
This user would like to thank naza for this useful post:
  #318  
Old 02.02.2021, 17:59
Senior Member
 
Join Date: Nov 2020
Location: Basel
Posts: 410
Groaned at 24 Times in 13 Posts
Thanked 661 Times in 265 Posts
Polymath has a reputation beyond reputePolymath has a reputation beyond reputePolymath has a reputation beyond reputePolymath has a reputation beyond reputePolymath has a reputation beyond repute
Re: Equity Portfolio Advice

Quote:
View Post
So are you suggesting I hold my cash and wait for a stock market crash?
This is definitely not what anyone is saying. Market timing doesn't work the majority of the time.

I believe the research indicates that an all-in now approach beats a DCA approach approximately two thirds of the time (based on S&P 500 as a base I think?).

What's also interesting to note is the asymmetry of returns per trading day, meaning there is a disproportionate return on very few trading days across decades. You will find examples cited where if you missed the 5, 10, 20 best trading days in x period then your net return would be reduced by x% in each case, and it is significant. As a counterpoint however I was never able to find any examples on what your returns would be if you missed the 5, 10, 20 worst trading days. Nevertheless, time in the market beats timing the market as Buffett would say.

I said it a few pages back in this thread, the best time to plant a tree was twenty years ago, the second best time is today. But I am a hypocrite because a DCA approach is still a form of timing the market, albeit a modified one.

Now, I can elaborate on why I have chosen this approach. The reason is because I have settled on a 95%+ equities allocation and I would like to maintain that indefinitely, perhaps increasing to 98-99% when the 1-2% cash is very significant in nominal terms. This means that I have one chance and one chance only to potentially deploy a much larger percentage of my net worth in a market downturn. I did not have that opportunity last year as I had not settled on my investment strategy at that time. Once I am fully invested I will only have the ability to add to my holdings monthly with my salary.

Therefore, I think the advice would be if you don't have the 'stomach' (as Phil_MCR refers to earlier on the thread) to see large paper losses then start small and build your position at a rate that you are comfortable with. The two key pieces of advice that I think all here will agree on are:

1. start by investing something today
2. don't panic and sell when the market turns
Reply With Quote
The following 2 users would like to thank Polymath for this useful post:
  #319  
Old 02.02.2021, 20:04
Senior Member
 
Join Date: Dec 2015
Location: Zurich
Posts: 271
Groaned at 4 Times in 4 Posts
Thanked 139 Times in 94 Posts
Dr Mick is considered knowledgeableDr Mick is considered knowledgeableDr Mick is considered knowledgeable
Re: Equity Portfolio Advice

Quote:
View Post
You will find examples cited where if you missed the 5, 10, 20 best trading days in x period then your net return would be reduced by x% in each case, and it is significant. As a counterpoint however I was never able to find any examples on what your returns would be if you missed the 5, 10, 20 worst trading days.
https://www.bluesquarewealth.com/avo...he-worst-days/

https://theirrelevantinvestor.com/20...the-best-days/
Reply With Quote
This user would like to thank Dr Mick for this useful post:
  #320  
Old 02.02.2021, 20:18
Senior Member
 
Join Date: Nov 2020
Location: Basel
Posts: 410
Groaned at 24 Times in 13 Posts
Thanked 661 Times in 265 Posts
Polymath has a reputation beyond reputePolymath has a reputation beyond reputePolymath has a reputation beyond reputePolymath has a reputation beyond reputePolymath has a reputation beyond repute
Re: Equity Portfolio Advice

Very interesting. I have to admit I hadn't really looked too hard for the data, it just didn't appear in any of the books that I've read.

The strategy regarding the 200-day moving average I have come across before but not backed up with the data. However, I just chalked it up to chartist nonsense (I may have been wrong).

This quote from the first link sounds like snake oil to me though:

Quote:
Blue Square Wealth is a firm dedicated to reducing the risk in your portfolio utilizing our proprietary market indicators. Our risk indicators help us to adjust your portfolio allocation between stocks and cash. When the indicators reflect we are entering a market down-trend, we allocate more of your portfolio into cash. Conversely, when our indicators show the market is moving into an up-trend, we allocate more of your portfolio into stocks. Our strategy has resulted in delivering returns that are capturing a significant portion of the market’s best days, while significantly reducing your exposure during the market’s worst performing days. Blue Square Wealth employs our proprietary investment strategy to manage the risk of your portfolio enduring the full brunt of market corrections
I prefer this one from the second link:

Quote:
it’s important to keep in mind that back tests are easy, the real world is hard.

Last edited by Polymath; 02.02.2021 at 20:31.
Reply With Quote
This user would like to thank Polymath for this useful post:
Reply

Tags
fundsmith, investing, smithson, stocks




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Equity Transfer of house sale in UK to CHF ballum Finance/banking/taxation 25 17.08.2018 00:17
Tax on equity earnings SarcasmXXL Finance/banking/taxation 23 31.10.2017 09:29
Anyone in Venture Capital or Private Equity? stamplover Business & entrepreneur 0 05.08.2015 20:43
Releasing equity in UK to buy an appartment in Switzerland Chester Housing in general 4 19.04.2007 20:03
Equity Investing - The DIY Route hbunny Finance/banking/taxation 3 10.12.2006 21:38


All times are GMT +2. The time now is 07:37.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2022, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0