Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation  
Reply
 
Thread Tools Display Modes
  #361  
Old 03.02.2021, 19:36
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
Never had an acknowledgment, just get the contract notes in due course.
We probably mean the same thing .
So far I have not received anything.
Reply With Quote
  #362  
Old 05.02.2021, 12:43
Forum Veteran
 
Join Date: Mar 2010
Location: Greater Zürich Area
Posts: 993
Groaned at 130 Times in 81 Posts
Thanked 809 Times in 430 Posts
EPMike has a reputation beyond reputeEPMike has a reputation beyond reputeEPMike has a reputation beyond reputeEPMike has a reputation beyond repute
Re: Equity Portfolio Advice

Quote:
View Post
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
May I ask what tool did you use for this graph?
Reply With Quote
  #363  
Old 05.02.2021, 13:05
fatmanfilms's Avatar
Forum Legend
 
Join Date: Apr 2010
Location: Verbier
Posts: 21,376
Groaned at 461 Times in 352 Posts
Thanked 23,091 Times in 11,824 Posts
fatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond repute
Re: Equity Portfolio Advice

Quote:
View Post
May I ask what tool did you use for this graph?

It came from page 9 of the Smithson presentation.
https://www.smithson.co.uk/docs/defa....pdf?sfvrsn=16
Reply With Quote
This user would like to thank fatmanfilms for this useful post:
  #364  
Old 05.02.2021, 13:11
Phil_MCR's Avatar
Forum Legend
 
Join Date: Oct 2009
Location: Basel
Posts: 14,742
Groaned at 284 Times in 189 Posts
Thanked 18,634 Times in 7,826 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
May I ask what tool did you use for this graph?
This kind of graph appears quite a lot when you try to find the efficient frontier constructing a portfolio from a bunch of different assets:

https://en.wikipedia.org/wiki/Efficient_frontier
Reply With Quote
This user would like to thank Phil_MCR for this useful post:
  #365  
Old 05.02.2021, 19:54
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

What do people think about Berkshire's long-term prospects, say the next 40 years? Warren and Charlie will be gone but surely their legacy continues.

I was attracted to it for a few reasons, including the fact it pays no dividends (all profits retained and reinvested, also good from a tax perspective). It's been criticised in recent years and has lagged the S&P 500 for some time but I don't see that as an automatic reason not to invest. It looks to me like a conglomerate of solid businesses with stakes in Apple and Amazon.

A couple of things put me off including taking positions in the airlines last year and subsequently selling at a loss. We know these are bad businesses. Not sure what happened here. I think I also heard Terry mention that Fundsmith would never own an insurance company. Not sure of the reasoning for that but it's a key part of Berkshire's business which also raises questions for me.

Some things that may point to a bright future are stakes in Snowflake (data warehousing) and some pharma positions. They also picked up some stakes in five Japanese trading houses recently - no idea what the prospects are there?

My plan was to have a 5-10% stake in BRK.B (can't decide on a meaningful percentage). I welcome opinions on both the future of Berkshire and to what extent this stake could contribute/ complement the remainder of my portfolio of 25-30% Fundsmith and 65% SSON.
Reply With Quote
  #366  
Old 05.02.2021, 20:03
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
What do people think about Berkshire's long-term prospects, say the next 40 years? Warren and Charlie will be gone but surely their legacy continues.

I was attracted to it for a few reasons, including the fact it pays no dividends (all profits retained and reinvested, also good from a tax perspective). It's been criticised in recent years and has lagged the S&P 500 for some time but I don't see that as an automatic reason not to invest. It looks to me like a conglomerate of solid businesses with stakes in Apple and Amazon.

A couple of things put me off including taking positions in the airlines last year and subsequently selling at a loss. We know these are bad businesses. Not sure what happened here. I think I also heard Terry mention that Fundsmith would never own an insurance company. Not sure of the reasoning for that but it's a key part of Berkshire's business which also raises questions for me.

Some things that may point to a bright future are stakes in Snowflake (data warehousing) and some pharma positions. They also picked up some stakes in five Japanese trading houses recently - no idea what the prospects are there?

My plan was to have a 5-10% stake in BRK.B (can't decide on a meaningful percentage). I welcome opinions on both the future of Berkshire and to what extent this stake could contribute/ complement the remainder of my portfolio of 25-30% Fundsmith and 65% SSON.
I see i've failed to preach Baillie Gifford to you
Reply With Quote
The following 2 users would like to thank HickvonFrick for this useful post:
  #367  
Old 05.02.2021, 20:08
fatmanfilms's Avatar
Forum Legend
 
Join Date: Apr 2010
Location: Verbier
Posts: 21,376
Groaned at 461 Times in 352 Posts
Thanked 23,091 Times in 11,824 Posts
fatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond repute
Re: Equity Portfolio Advice

Quote:
View Post
What do people think about Berkshire's long-term prospects, say the next 40 years? Warren and Charlie will be gone but surely their legacy continues.

I was attracted to it for a few reasons, including the fact it pays no dividends (all profits retained and reinvested, also good from a tax perspective). It's been criticised in recent years and has lagged the S&P 500 for some time but I don't see that as an automatic reason not to invest. It looks to me like a conglomerate of solid businesses with stakes in Apple and Amazon.

A couple of things put me off including taking positions in the airlines last year and subsequently selling at a loss. We know these are bad businesses. Not sure what happened here. I think I also heard Terry mention that Fundsmith would never own an insurance company. Not sure of the reasoning for that but it's a key part of Berkshire's business which also raises questions for me.

Some things that may point to a bright future are stakes in Snowflake (data warehousing) and some pharma positions. They also picked up some stakes in five Japanese trading houses recently - no idea what the prospects are there?

My plan was to have a 5-10% stake in BRK.B (can't decide on a meaningful percentage). I welcome opinions on both the future of Berkshire and to what extent this stake could contribute/ complement the remainder of my portfolio of 25-30% Fundsmith and 65% SSON.
Berkshire will be a great long term business, previously I have held 35% of my portfolio in BRK.B, I bought it with GBP @ $2 in 2007/8. At the start of the financial crisis I sold half as they went up as the market collapsed, I then repurchased as they had fallen 40-50%. Berkshire insurance is profitable as they walk away from bad business, other insurance price to market & lose money.

I think a 5-10% holding is good diversification, not sure what I will do in 2 years when Smithson exceeds 2/3 of my portfolio S&P 500 / BRK.B are good possibilities.
Reply With Quote
The following 2 users would like to thank fatmanfilms for this useful post:
  #368  
Old 05.02.2021, 20:26
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
I see i've failed to preach Baillie Gifford to you
Too hot right now. More research required
Reply With Quote
  #369  
Old 05.02.2021, 20:28
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
Berkshire will be a great long term business, previously I have held 35% of my portfolio in BRK.B, I bought it with GBP @ $2 in 2007/8. At the start of the financial crisis I sold half as they went up as the market collapsed, I then repurchased as they had fallen 40-50%. Berkshire insurance is profitable as they walk away from bad business, other insurance price to market & lose money.

I think a 5-10% holding is good diversification, not sure what I will do in 2 years when Smithson exceeds 2/3 of my portfolio S&P 500 / BRK.B are good possibilities.
Thanks, good diversification was also my line of thinking.
Reply With Quote
  #370  
Old 05.02.2021, 21:23
Phil_MCR's Avatar
Forum Legend
 
Join Date: Oct 2009
Location: Basel
Posts: 14,742
Groaned at 284 Times in 189 Posts
Thanked 18,634 Times in 7,826 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
What do people think about Berkshire's long-term prospects, say the next 40 years? Warren and Charlie will be gone but surely their legacy continues.

I was attracted to it for a few reasons, including the fact it pays no dividends (all profits retained and reinvested, also good from a tax perspective). It's been criticised in recent years and has lagged the S&P 500 for some time but I don't see that as an automatic reason not to invest. It looks to me like a conglomerate of solid businesses with stakes in Apple and Amazon.

A couple of things put me off including taking positions in the airlines last year and subsequently selling at a loss. We know these are bad businesses. Not sure what happened here. I think I also heard Terry mention that Fundsmith would never own an insurance company. Not sure of the reasoning for that but it's a key part of Berkshire's business which also raises questions for me.

Some things that may point to a bright future are stakes in Snowflake (data warehousing) and some pharma positions. They also picked up some stakes in five Japanese trading houses recently - no idea what the prospects are there?

My plan was to have a 5-10% stake in BRK.B (can't decide on a meaningful percentage). I welcome opinions on both the future of Berkshire and to what extent this stake could contribute/ complement the remainder of my portfolio of 25-30% Fundsmith and 65% SSON.
I think BRK's record speaks for itself. I never owned BRK.B as I always wanted more margin of security, but I'll probably have to pay up as the price I want to pay is probably below the price that BRK will buy back its own stock. My target portfolio has a 3% allocation to BRK.B.

I like the fact that they are super patient. Even after the March 2020 drops, they didn't buy and are keeping their powder dry. Sure they made some mis-steps and I don't really understand a fraction of what they are doing so for me, it's more of a gamble that they continue to do great and invest in the boring stuff that doesn't get too much media attention.
__________________
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.

Last edited by Phil_MCR; 05.02.2021 at 21:38.
Reply With Quote
The following 2 users would like to thank Phil_MCR for this useful post:
  #371  
Old 05.02.2021, 21:30
fatmanfilms's Avatar
Forum Legend
 
Join Date: Apr 2010
Location: Verbier
Posts: 21,376
Groaned at 461 Times in 352 Posts
Thanked 23,091 Times in 11,824 Posts
fatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond repute
Re: Equity Portfolio Advice

Quote:
View Post
I think the record speaks for itself. I never owned BRK.B as I always wanted more margin of security, but I'll probably have to pay up as the price I want to pay is probably below the price that BRK will buy back its own stock.

I like the fact that they are super patient. Even after the March 2020 drops, they didn't buy and are keeping their powder dry. Sure they made some mis-steps and I don't really understand a fraction of what they are doing so for me, it's more of a gamble that they continue to do great and invest in the boring stuff that doesn't get too much media attention.
It's great at 90 being able to take a long term view
Reply With Quote
This user would like to thank fatmanfilms for this useful post:
  #372  
Old 06.02.2021, 14:39
Banned
 
Join Date: Oct 2014
Location: SG
Posts: 9,629
Groaned at 503 Times in 373 Posts
Thanked 12,816 Times in 6,645 Posts
Urs Max has a reputation beyond reputeUrs Max has a reputation beyond reputeUrs Max has a reputation beyond reputeUrs Max has a reputation beyond reputeUrs Max has a reputation beyond reputeUrs Max has a reputation beyond repute
Re: Equity Portfolio Advice

A fair comparison with BRK includes SP500 dividends. That is, you don't compare to SP500 (^GSPC on yahoo) but to ^SP500TR.

Here's a link to a yahoo chart.
In addition to selecting a time range you can zoom in/out with the mouse wheel, and shift the period by clicking and dragging it.
Personally, I'd prefer to exclude 2020/21 for the first glance because the effect of covid on the stock market is still a work in progress. It won't hurt to keep in mind though that BRK is lagging by 18% since January 2020.

Depending on the comparison's starting point between 2005-2009 you pick, BRK will a little ahead or behind by 2020, but the difference won't be all that significant. A comparison starting 2006 shows why it's ahead (where that applies), it's BRK's massive boost in Q3 of 2007, something that looks more lucky than good due to the short time it took to materialise, much like 2021 may be seen as unlucky.

Also worth noting is the fact that BRK didn't provide significant protection on the way down during the crisis 2008/09, the two curves are very much the same in a comparison starting after BRK's 3Q2007 spike. Holding $100bln in cash won't help today's performance, but the cash they had then didn't protect in 2008 either, so it's more ballast than useful.

To me BRK has lost its luster. I definitely won't increase my position anytime soon, in fact I'm thinking about selling.
Reply With Quote
  #373  
Old 08.02.2021, 10:05
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

BRK surely is too big now. I don't really have any interest - if I wanted that style of investing I'd just buy Fundsmith.
Reply With Quote
This user would like to thank HickvonFrick for this useful post:
  #374  
Old 09.02.2021, 19:33
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
A fair comparison with BRK includes SP500 dividends. That is, you don't compare to SP500 (^GSPC on yahoo) but to ^SP500TR.

Here's a link to a yahoo chart.
In addition to selecting a time range you can zoom in/out with the mouse wheel, and shift the period by clicking and dragging it.
Personally, I'd prefer to exclude 2020/21 for the first glance because the effect of covid on the stock market is still a work in progress. It won't hurt to keep in mind though that BRK is lagging by 18% since January 2020.

Depending on the comparison's starting point between 2005-2009 you pick, BRK will a little ahead or behind by 2020, but the difference won't be all that significant. A comparison starting 2006 shows why it's ahead (where that applies), it's BRK's massive boost in Q3 of 2007, something that looks more lucky than good due to the short time it took to materialise, much like 2021 may be seen as unlucky.

Also worth noting is the fact that BRK didn't provide significant protection on the way down during the crisis 2008/09, the two curves are very much the same in a comparison starting after BRK's 3Q2007 spike. Holding $100bln in cash won't help today's performance, but the cash they had then didn't protect in 2008 either, so it's more ballast than useful.

To me BRK has lost its luster. I definitely won't increase my position anytime soon, in fact I'm thinking about selling.
I think many share this sentiment and one of the reasons for my question. It's usually acknowledged that a period of outperformance is unlikely to be repeated. Could you say the opposite and consider that Berkshire's lacklustre performance in the last decade might result in it performing much better in the next decade?
Reply With Quote
This user would like to thank Polymath for this useful post:
  #375  
Old 09.02.2021, 19:37
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
BRK surely is too big now. I don't really have any interest - if I wanted that style of investing I'd just buy Fundsmith.
It's large size is another reason for my question. Although its market cap is only 68% of Tesla

My assessment was that Berkshire is different enough to Fundsmith to potentially warrant a small place in my portfolio.
Reply With Quote
This user would like to thank Polymath for this useful post:
  #376  
Old 10.02.2021, 13:51
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
It's large size is another reason for my question. Although its market cap is only 68% of Tesla

My assessment was that Berkshire is different enough to Fundsmith to potentially warrant a small place in my portfolio.
I'd be tempted for something like Guinness Global Innovators or Monks if you want diversification from FS without going crazy on risk.

I want to see a good FS performance in the next 18 months - 2 years - its heading backwards down the list of global equity funds. Although I am definitely keeping Smithson and FEET, FS is on my "sell" watchlist.

It was about 12% of my portfolio at the beginning of 2020, now its down to 6 or 7%.

EWI, SMT, BG Global Discovery, JP Morgan China Growth and Income and BG Positive Change are now a terrifying %. Must be 75% or thereabouts. (Most of the remainder is FS / SSON / FEET)

I don't know whether to take some profits or just hold and accept a correction if it comes. I was going to redistribute some to SSON, but have held my nerve for now.

Last edited by HickvonFrick; 10.02.2021 at 14:35.
Reply With Quote
  #377  
Old 10.02.2021, 14:43
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
I'd be tempted for something like Guinness Global Innovators or Monks if you want diversification from FS without going crazy on risk.

I want to see a good FS performance in the next 18 months - 2 years - its heading backwards down the list of global equity funds. Although I am definitely keeping Smithson and FEET, FS is on my "sell" watchlist.

It was about 12% of my portfolio at the beginning of 2020, now its down to 6 or 7%.

EWI, SMT, BG Global Discovery, JP Morgan China Growth and Income and BG Positive Change are now a terrifying %. Must be 75% or thereabouts. (Most of the remainder is FS / SSON / FEET)

I don't know whether to take some profits or just hold and accept a correction if it comes. I was going to redistribute some to SSON, but have held my nerve for now.
Talk about sowing seeds of confusion...

First look at Guinness shows something concerning:

Quote:
The Directors are empowered to levy a redemption charge not exceeding 3% of the Net Asset Value of Shares being redeemed. Details of any such charge with respect to one or more Funds will be set out in the relevant Supplement.
https://www.guinnessfunds.com/pdfdoc...prospectus.pdf

Not sure when this applies but I don't like the look of it.

I count at least 8 funds your holding. I think your position is something that I would like to avoid (although I think your problem is a positive one rather than negative (which it could be)).

I just want to keep it simple. Set the strategy and maintain for the long term.
Reply With Quote
  #378  
Old 10.02.2021, 14:49
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
Talk about sowing seeds of confusion...

First look at Guinness shows something concerning:



https://www.guinnessfunds.com/pdfdoc...prospectus.pdf

Not sure when this applies but I don't like the look of it.

I count at least 8 funds your holding. I think your position is something that I would like to avoid (although I think your problem is a positive one rather than negative (which it could be)).

I just want to keep it simple. Set the strategy and maintain for the long term.
I own 12, although there's huge overlap on several, and some are very small holdings. Overall im definitely not indexing!

Trusts:
SSON
FEET
EWI
KIT (new position)
PHI
SMT
JCGI
ATT

Funds:
FS
Baillie Gifford Positive Change
Baillie Gifford Long Term Global Growth
Baillie Gifford Global Discovery

I've reduced it somewhat this year. At the start of 2020 it was about 20. My mum had set up some for me historically in ISAs that I "rationalised". If I knew she wasn't looking i'd replace Positive Change and Global Discovery with KIT and EWI to get it down to 10. I don't really want to go much lower.

Yes - I'm 32 and my mum still watches what I'm doing - she runs my siblings accounts 100% still so things could be worse!

Last edited by HickvonFrick; 10.02.2021 at 15:05.
Reply With Quote
This user would like to thank HickvonFrick for this useful post:
  #379  
Old 10.02.2021, 18:38
fatmanfilms's Avatar
Forum Legend
 
Join Date: Apr 2010
Location: Verbier
Posts: 21,376
Groaned at 461 Times in 352 Posts
Thanked 23,091 Times in 11,824 Posts
fatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond repute
Re: Equity Portfolio Advice

Quote:
View Post

I want to see a good FS performance in the next 18 months - 2 years - its heading backwards down the list of global equity funds. Although I am definitely keeping Smithson and FEET, FS is on my "sell" watchlist.
The most difficult part of the Fundsmith strategy is 'do nothing' & it's where most people lose by over trading. You are looking at far too short a timescale, you need to look over 1-2 economic cycles not 3 months to 18 months. Throughout FS history there have been many short periods of under performance, however that has more than been made up with over performance most of the time. Performance comes along in chunks, not daily / weekly / monthly.
Reply With Quote
The following 3 users would like to thank fatmanfilms for this useful post:
  #380  
Old 10.02.2021, 18:54
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
The most difficult part of the Fundsmith strategy is 'do nothing' & it's where most people lose by over trading. You are looking at far too short a timescale, you need to look over 1-2 economic cycles not 3 months to 18 months. Throughout FS history there have been many short periods of under performance, however that has more than been made up with over performance most of the time. Performance comes along in chunks, not daily / weekly / monthly.
I agree 18 months to 2 years isn't long enough but the last 2 years have already been pretty meh. That'd be 3 or 4 years of average performance. I think of all the funds I own its the one with the investment strategy I think will be the lowest return in the long term.

I'm giving it a bit of time - all I'd be doing is to add to SSON and to a lesser extent FEET if I sold, so not a big shift in investment style, more of a reallocation into higher growth sectors using Smithology. Definitely no more Baillie Gifford which is too hot now. Pretty much what you've been doing I think. I own about 60/40 SSON/FS and am considering 100/0. I don't think given my age that's unreasonable.
Reply With Quote
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 10:28.


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