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  #341  
Old 03.02.2021, 12:06
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Re: Equity Portfolio Advice

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Hi FMF, may I ask why you're favouring SSON over FS?

If I remember correctly you had posted a graph from SSON prospectus well over a year ago which was suggesting that 70/30 (FS to SSON) was the ideal allocation(less volatility, higher returns)
70/30 FS to SSON would be expected to be the least risky.

100 SSON is expected to be the highest return.
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  #342  
Old 03.02.2021, 12:10
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Re: Equity Portfolio Advice

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Hi FMF, may I ask why you're favouring SSON over FS?

If I remember correctly you had posted a graph from SSON prospectus well over a year ago which was suggesting that 70/30 (FS to SSON) was the ideal allocation(less volatility, higher returns)
The graph I remember seeing had a 35% FS/ 65% SSON split as the sweet spot for the same level of risk as 100% FS but with higher returns. Any increase in SSON beyond this indicated more risk overall with higher expected returns.
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  #343  
Old 03.02.2021, 12:13
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Re: Equity Portfolio Advice

Hi, thanks both for your replies. I'm aware of it but it always used to be the case. This is the reason that makes me wonder why FMF changes his allocation.
Is it just a bigger appetite for higher returns/risk?
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  #344  
Old 03.02.2021, 12:56
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Re: Equity Portfolio Advice

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Hi, thanks both for your replies. I'm aware of it but it always used to be the case. This is the reason that makes me wonder why FMF changes his allocation.
Is it just a bigger appetite for higher returns/risk?
65% Smithson 35% Fundsmith is the point of maximum return for the same risk as 100% in Fundsmith. I wanted to see if the theory worked in practice for a couple years before going to that allocation. Just being cautious.

Bear in mind large trades in Smithson 5000 shares or more will be priced worse than smaller orders where you could deal an unlimited amount in Fundsmith. Also remember Fundsmith is over 10 times the size, so only a few people could ever have such a large allocation or the premium would ski rocket if every investor tried to do this this
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  #345  
Old 03.02.2021, 13:05
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Re: Equity Portfolio Advice

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There's a saying that goes: "If 3 men tell you that you are sick, lie down."
but then again, where to invest?
- real estate - not the liebling of EF members, also in a bubble risk
- bonds - zero returns

Cash just gets inflated (albeit, by not much).

As for the OP, dollar cost averaging (buying small amounts every month rather than a lump sum) might be a good option.
Another mitigation is the death-cross method mentioned above (buying and selling according to 200MA).
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  #346  
Old 03.02.2021, 13:09
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Re: Equity Portfolio Advice

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65% Smithson 35% Fundsmith is the point of maximum return for the same risk as 100% in Fundsmith. I wanted to see if the theory worked in practice for a couple years before going to that allocation. Just being cautious.

Bear in mind large trades in Smithson 5000 shares or more will be priced worse than smaller orders where you could deal an unlimited amount in Fundsmith.
Thanks for sharing your reasoning behind it!
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  #347  
Old 03.02.2021, 13:10
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Re: Equity Portfolio Advice

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but then again, where to invest?
- real estate - not the liebling of EF members, also in a bubble risk
- bonds - zero returns

Cash just gets inflated (albeit, by not much).

As for the OP, dollar cost averaging (buying small amounts every month rather than a lump sum) might be a good option.
Another mitigation is the death-cross method mentioned above (buying and selling according to 200MA).
- Invest in altcoins that are not so crazily expensive compared to Bitcoin, which even Musk gratifies lately. Since 13.01.2021 my portfolio has already increased by 6k.
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  #348  
Old 03.02.2021, 13:30
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Re: Equity Portfolio Advice

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- Invest in altcoins that are not so crazily expensive compared to Bitcoin, which even Musk gratifies lately. Since 13.01.2021 my portfolio has already increased by 6k.
I don't mean any disrespect but comments like this only serve to pollute the thread. The thread is entitled 'Equity Portfolio Advice'. Cryptocurrency has nothing to do with equities. Moreover, they are not investments as they don't generate any future streams of income (I made this point to you before in another thread). I feel compelled to mention this because you risk harming the financial position of readers of this thread.
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  #349  
Old 03.02.2021, 13:39
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Re: Equity Portfolio Advice

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but then again, where to invest?
- real estate - not the liebling of EF members, also in a bubble risk
- bonds - zero returns

Cash just gets inflated (albeit, by not much).

As for the OP, dollar cost averaging (buying small amounts every month rather than a lump sum) might be a good option.
Another mitigation is the death-cross method mentioned above (buying and selling according to 200MA).
If I was the OP with his low risk aversion id go for the 65/35 FS/SSON.

Perhaps even 60/35/5 FS/SSON/FEET.

Sure there's some risk but that's life.
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  #350  
Old 03.02.2021, 13:44
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Re: Equity Portfolio Advice

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I don't mean any disrespect but comments like this only serve to pollute the thread. The thread is entitled 'Equity Portfolio Advice'. Cryptocurrency has nothing to do with equities. Moreover, they are not investments as they don't generate any future streams of income (I made this point to you before in another thread). I feel compelled to mention this because you risk harming the financial position of readers of this thread.
No offense taken and no intention to pollute the thread. That’s my answer to comment from “user” regarding what other options are there to invest in. Regarding the classification of whether they are investments (cryptos), that generate the future streams of income or not, could be debatable. Many stocks are overvalued nowadays and also do not reflect the real valuation of businesses that investors tend to believe they invest in.

Then again. There is no financial advice and the discussion on the EF should be not taken as such. There are dedicated financial fora and discussion serving such purpose.
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  #351  
Old 03.02.2021, 13:53
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Re: Equity Portfolio Advice

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No offense taken and no intention to pollute the thread. That’s my answer to comment from “user” regarding what other options are there to invest in. Regarding the classification of whether they are investments (cryptos), that generate the future streams of income or not, could be debatable. Many stocks are overvalued nowadays and also do not reflect the real valuation of businesses that investors tend to believe they invest in.

Then again. There is no financial advice and the discussion on the EF should be not taken as such. There are dedicated financial fora and discussion serving such purpose.
apart from the fact that I'm with Polymath on this one (ctyptos are theoretically worthless), a coin has much higher volatility potential that putting money in the stock market, where you buy actual companies producing actual products (and services) that have actual income.

For the risk averse investor putting any money into crypto is probably a totally no-go scenario.
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  #352  
Old 03.02.2021, 13:55
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Re: Equity Portfolio Advice

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65% Smithson 35% Fundsmith is the point of maximum return for the same risk as 100% in Fundsmith. I wanted to see if the theory worked in practice for a couple years before going to that allocation. Just being cautious.

Bear in mind large trades in Smithson 5000 shares or more will be priced worse than smaller orders where you could deal an unlimited amount in Fundsmith. Also remember Fundsmith is over 10 times the size, so only a few people could ever have such a large allocation or the premium would ski rocket if every investor tried to do this this
Was this only a snapshot in the past or does this risk profile hold going forward as well, considering the investments of the fund tend to change over time? I got no idea how you calculated this, so excuse the n00b question.
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  #353  
Old 03.02.2021, 14:38
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Re: Equity Portfolio Advice

Again, you wouldn’t want to give any direct financial advice here.

My observations:
- Bitcoin is too expensive and quite volatile for my liking and over the time that I spread my risks upon 12 different products on the SQ, given larger amounts allocation to those so-called promising coins e.g. Etherum, Chainlink, Litecoin ... and etc.
- I could potentiallly have better return from spread same investment over several altcoins compared to put all in one Bitcoin over the time.
- There’s lots of hype in 2021 surrounding the cryptos and some compare it to the new dotcom era.
- it’s a gamble in the end.

Now I take my coat and politely leave the venue.

(Reply to dackrambo’s message that has been deleted)
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  #354  
Old 03.02.2021, 15:12
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Re: Equity Portfolio Advice

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Was this only a snapshot in the past or does this risk profile hold going forward as well, considering the investments of the fund tend to change over time? I got no idea how you calculated this, so excuse the n00b question.
It's calculated by volatility & return relative to the index, I don't think much has changed Smithson significantly outperformed FS in 2019 & 2020
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Old 03.02.2021, 18:03
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Re: Equity Portfolio Advice

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The graph I remember seeing had a 35% FS/ 65% SSON split as the sweet spot for the same level of risk as 100% FS but with higher returns. Any increase in SSON beyond this indicated more risk overall with higher expected returns.
Regarding the Fundsmith fund in Euro, is anyone having troubles getting in touch with State Street in Luxembourg?
I have sent them a dealing form via fax a few days ago but it has not been acknowledged yet (they used to send a confirmation email in the evening).
I have also tried to call them and was told my order was "in progress", while emails have been ignored so far.

I am aware they will be gone at the end of this month, however I thought it was business as usual till Feb. 26.
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  #356  
Old 03.02.2021, 18:08
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Re: Equity Portfolio Advice

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Regarding the Fundsmith fund in Euro, is anyone having troubles getting in touch with State Street in Luxembourg?
I have sent them a dealing form via fax a few days ago but it has not been acknowledged yet (they used to send a confirmation email in the evening).
I have also tried to call them and was told my order was "in progress", while emails have been ignored so far.

I am aware they will be gone at the end of this month, however I thought it was business as usual till Feb. 26.
Never had an acknowledgment, just get the contract notes in due course.
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  #357  
Old 03.02.2021, 18:48
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Re: Equity Portfolio Advice

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Regarding the Fundsmith fund in Euro, is anyone having troubles getting in touch with State Street in Luxembourg?
I have sent them a dealing form via fax a few days ago but it has not been acknowledged yet (they used to send a confirmation email in the evening).
I have also tried to call them and was told my order was "in progress", while emails have been ignored so far.

I am aware they will be gone at the end of this month, however I thought it was business as usual till Feb. 26.
Buying it through IB. Click click, done.
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  #358  
Old 03.02.2021, 19:19
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Re: Equity Portfolio Advice

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Buying it through IB. Click click, done.
Basically, I could purchase on the SQ the following products in EUR/GBP as per attachment. Apologies, that I was a bit lazy to make a photo instead of typing.

Are they all the same product. Which on would you recommend?

I’m very inclined to try it out as I’m currently invested in 20 hand picked stocks and different composition would be always welcome.
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  #359  
Old 03.02.2021, 19:20
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Re: Equity Portfolio Advice

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Buying it through IB. Click click, done.
As far as I’m aware it’s only the GBP denominated fund that is available on IB. There may be reasons why Dr Mick prefers to opt for the EUR fund (I understand its composition is slightly different).
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  #360  
Old 03.02.2021, 19:35
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Re: Equity Portfolio Advice

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Basically, I could purchase on the SQ the following products in EUR/GBP as per attachment. Apologies, that I was a bit lazy to make a photo instead of typing.

Are they all the same product. Which on would you recommend?

I’m very inclined to try it out as I’m currently invested in 20 hand picked stocks and different composition would be always welcome.
T EUR ACC is the one to go with.
Series R is more expensive.
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