Diversification

30 Apr
Is This The Perfect Portfolio?
We’ll discuss how Robert Shiller predicted the stock market bubble in the 1990s and how it resembles the current situation.

We’ll also discuss the perfect portfolio.

Introduction

I recently listened to an interview with Nobel Prize winner Robert J. Shiller on the topic of finding the perfect portfolio. It’s a very interesting subject, so I’ll summarize the interview and discuss the key concepts.

Before we dig deeper, let me first describe a few interesting interview intros. Shiller didn’t get the Nobel Prize for nothing as he correctly identified that stocks were in a bubble in the 1990s, and that real estate was in a bubble in the 2000s. More →
By Sven Carlin Bubbles Corporate Earnings Diversification FED GDP Investing Strategy Investiv Daily Robert Shiller
15 Jan
The “Sleep Well At Night” Investing Strategy
Investing is personal and should be more about sleeping well at night than returns.

I hope you sleep well at night because you are well prepared for what might happen and not because you don’t know the risks.

Unfortunately, sleeping well will always come at a short term cost but I think it’s well worth it.

Introduction

Two and a half years ago, I took out a mortgage with a fixed interest rate (3.55%) even though my friend from the Dutch National Bank was telling me to take the lower variable interest rate (2.5%) because the probability that interest rates would rise was very small and I could always change the variable rate to a fixed rate if necessary. More →
By Sven Carlin All-Weather Portfolio Bonds Diversification Interest Rates Investing Strategy Investiv Daily Stocks
27 Dec

Why You Need Gold Miners In Your Portfolio In 2018

I recently wrote about how gold is an essential part of a portfolio. However, today I want to dig deeper into what kind of gold investments could be the best fit your portfolio because it’s all about your personal preferences and every gold miner is different.

Let’s start with the basis of gold in an all-weather strategy.

Gold As Part Of An All-Weather Strategy

There are two macroeconomic environments where gold as a hedge does well: when there is inflation, and especially when there is an economic slowdown and inflation. More →

By Sven Carlin All-Weather Portfolio Commodities Diversification Gold Gold Miners Inflation Investing Strategy Investiv Daily
01 Sep
Yes, It’s Possible. No, It’s Not Hard. This Is How You Can Outperform The Market.
The modern portfolio theory states that 30 stocks are enough for a portfolio.

However, every addition to your portfolio increases the likelihood of it being a loser.

A businesslike perspective offers a different approach that can lead to much better returns.

Introduction

There are millions of investing opportunities, from real estate, to stocks, bonds, options, derivatives, various funds, commodities, stamps, antiques, cars, and who knows what else. This makes all investors, from beginners to professional investors, very confused on what to invest in. In today’s article, I’ll give a perspective on how many positions one should have in their portfolio that you haven’t heard before. More →
By Sven Carlin Corporate Earnings Diversification Investing Strategy Investiv Daily
21 Aug
Real Estate Vs. Stocks – What Sven Says Makes The Better Investment Today
As investors, we must be primarily concerned about risk and return, not asset class.

Introduction

I often get a question from people that have a decent amount of money about where to put that money as they know I specialize in investing, and especially the stock market.

They’re often surprised when I tell them to invest in real estate and to leave the stock market to those who can take advantage of the volatility and greater risks especially now that stock valuations are extremely high, or to do both as an excellent diversification strategy. More →
By Sven Carlin Diversification Investing Strategy Investiv Daily Real Estate S&P 500 Stocks
21 Jun
Diversification vs. Concentration
Index funds and diversification have worked extremely well in the past 35 years, however their success can be thanked to geography, as we hear only about the success in the U.S., and to declining interest rates.

If the S&P 500 had the same earnings yield as when the Vanguard fund gained traction, it would be at 557 points, yes 77% below current levels.

It’s better to wait in cash than buy a diversified index fund now.

Introduction

Some investment gurus advocate spreading your portfolio across various asset classes in order to limit your risks for the same return. On the other hand, others say diversification is for idiots and for those who don’t know what they’re doing. I’ll analyze their arguments and see what the best option is for you. More →
By Sven Carlin Charlie Munger Concentration Diversification Index Funds Interest Rates Investing Strategy Investiv Daily Jack Bogle S&P 500 Stocks Temporal Diversification US Economy Vanguard Warren Buffett
08 Jun
How To Invest For Your Children Or Grandchildren
Whether investing for children or retirement, the goal is to maximize portfolio value at a specific future date, not now or in the next six months.

Be wary of fees as they eat up a huge part of your future wealth. I’ll show how to avoid them.

Temporal diversification and buying companies that create value will do wonders over time.

Introduction

Our greatest treasure is, of course, our kids. I’m a proud father for six months now and I must say that every day since my child was born has been the most beautiful day of my life.

In that spirit, I want to provide the best possible environment for my kid to grow up, but also to enable him to do everything he wants when he is older. This has me, and probably many other parents or grandparents, already thinking about college tuition money, start-up capital for a business venture, helping with the down payment for a house, or simply paying for a wedding or a honey-moon. The notion that you can build a substantial nest-egg with small monthly payments is very attractive to me and will also provide a great educational experience to my kid as it will show him how small actions over a long period of time can bring huge results. More →
By Sven Carlin Apple Berkshire Hathaway Diversification Investing Strategy Investiv Daily Temporal Diversification
23 May
Portfolio Management & Trading – The Value Investing Way
A value investor should trade when a better bargain present itself.

Liquidity is a key component of an investment and of a portfolio.

Klarman’s advice is to stay in touch with the market to find opportunities, average down, and hold ten to fifteen stocks max for proper diversification.

Introduction

We’ll continue with the analysis of Seth Klarman’s book Margin of Safety. Today we’ll discuss chapter 13, Portfolio Management and Trading. More →
By Sven Carlin Averaging Down Diversification Hedging Investing Strategy Investiv Daily Seth Klarman Trading
24 Feb
Goldman Sachs Is Probably Right But Is It Worth The Risk?
Goldman Sachs recommends being overweight U.S. equities because of expected loose fiscal policies and because, as they have stated, valuations don’t matter.

Goldman expects a 3% yearly return on a moderate risk portfolio.

I’ll touch on what the average Goldman client is risking for their 3% yearly return.

Introduction

Goldman Sachs (NYSE: GS) recently released its 2017 market outlook. It shouldn’t be a surprise that the outlook is positive. It’s in their interest for stocks and the economy to continue to thrive as GS makes its money from IPO commissions, asset management fees, etc.

Despite the conflict of interest, their positive outlook will most probably be correct at the end of 2017, but there is something more important than being right or wrong on a yearly forecast.

Today we’ll discuss Goldman’s view and analyze the possible impacts on our portfolios. More →
By Sven Carlin Diversification Goldman Sachs Herd Behavior Investiv Daily Market Forecast US Economy Valuations
21 Feb
Buffett Put $12 Billion On Stocks, But He Didn’t Buy Into This Market
Stocks grew on positive sentiment after Buffett disclosed his optimism and spent $12 billion.

His purchases included Apple, and an extremely cheap sector.

Passive investing without thinking is what allows for such heterogeneity in valuations. For investors like Buffett, it’s easy money.

Introduction

At the end of January, market bulls rejoiced when Warren Buffet disclosed in a Charlie Rose interview that he had bought $12 billion of stocks since Trump’s election. Since then, the market has jumped another 3% on positive sentiment as even the greatest low risk investors of them all is buying into this market.

A few days ago, however, Berkshire Hathaway disclosed—in their obligatory holding statement—what Buffett actually bought. This, of course, hasn’t been as publicized as has the fact that he bought $12 billion of stocks, but as always, journalists prefer to focus more on what’s sexy than on what’s important.

Let’s see if we can learn something from what the Oracle of Omaha has been buying in this market which is constantly breaching all-time highs. More →
By Sven Carlin Berkshire Hathaway Diversification Global Growth Stocks Investiv Daily Temporal Diversification Warren Buffett