Diversified Portfolio??

[damon30]

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I wanted to ask about what everyone's experience is with having a more diversified portfolio (real estate, stocks, bonds, etc.). Do you recommend it? If you do have a diversified portfolio, how'd you start? Would love to hear more from the community about this.

 

[Mman]

I wanted to ask about what everyone's experience is with having a more diversified portfolio (real estate, stocks, bonds, etc.). Do you recommend it? If you do have a diversified portfolio, how'd you start? Would love to hear more from the community about this.

there is almost no argument for not having diversification in your overall portfolio which can easily be achieved via low cost ETFs and mutual funds to get exposure to whatever you want (stocks, bonds, REITs, domestic vs international, etc).

 

[damon30]

there is almost no argument for not having diversification in your overall portfolio which can easily be achieved via low cost ETFs and mutual funds to get exposure to whatever you want (stocks, bonds, REITs, domestic vs international, etc).

Would startups and more technical ventures be considered risky?

 

[Mman]

Would startups and more technical ventures be considered risky?

I will say yes, but please provide more examples as to what exactly you mean. I mean startups? Are you planning on being an angel investor? Seed stage? Series A or B? Other than investing in your directly family or what not, those are not things for amateurs to get involved in and are usually only done by people who do nothing but that sort of investing for a living.

Basically if someone has to ask about it they should not be doing it.

 

[sliceofbread136]

70% vtsax, 10% vxus, 10% vdigx, 10% vbtlx is what I’m shooting for.

honestly I would probably have been better with 100% vtsax but whatever

 

[damon30]

70% vtsax, 10% vxus, 10% vdigx, 10% vbtlx is what I’m shooting for.

honestly I would probably have been better with 100% vtsax but whatever

I feel these are ideal for more passive investors. I'm trying to be a more active investor (not trading and checking my stocks every hour) and build a diversified portfolio at my own discretion.

Anyone know anything more about fractional ownership investments? The high regulatory oversight appeals me in the sense that I would be less likely to be buying into something semi-fraudulent.

 

[ThoracicGuy]

I feel these are ideal for more passive investors. I'm trying to be a more active investor (not trading and checking my stocks every hour) and build a diversified portfolio at my own discretion.

Anyone know anything more about fractional ownership investments? The high regulatory oversight appeals me in the sense that I would be less likely to be buying into something semi-fraudulent.

It's unlikely that you'll beat passive indices over time.

 

[damon30]

It's unlikely that you'll beat passive indices over time.

Is it rare for people to beat passive indices?

 

[ThoracicGuy]

Is it rare for people to beat passive indices?

Over time, yes. In the short time, it can certainly happen. There are few Warren Buffets out there.

 

[Mman]

Is it rare for people to beat passive indices?

exceptionally rare for professional money managers to beat passive indexes over any 10+ year period

 

[sliceofbread136]

Some the active vanguard managed funds look pretty good, since inception vgidx and vseqx seem to have beaten vfaix and vtsax over the past 20 years and still have low fees (around 0.2). I’m planning to include them in my portfolio when I scrounge up the 3k min for each. Over the next 30 years they may not beat my index investments but atleast the fees are low.

I wouldn’t encourage you to devote a large portion of your portfolio to single stocks personally unless you are serious expert. Even just going for blue chip stocks seems risky. I would stick to mutual funds or etfs

 

[damon30]

I wouldn’t encourage you to devote a large portion of your portfolio to single stocks personally unless you are serious expert. Even just going for blue chip stocks seems risky. I would stick to mutual funds or etfs

Loving all of this advice. Thank you so much to everyone. So is real estate off the table to most people? Do you all feel its too risky?

 

[ThoracicGuy]

Loving all of this advice. Thank you so much to everyone. So is real estate off the table to most people? Do you all feel its too risky?

Once you are on your way to financial independence and have already saved and invested, you can consider it. I wouldn't start out doing it.

 

[Baron Samedi]

"Pyramid scheme and a time share? We're diversifying our portfolio."

 

[Slavic Scot]

Diversification if you want to get wealthy slowly, non-diversified if you want to get wealthy quickly.

Momentum investing actually consistently beats the market by ~1%. Buy when stocks are going up and sell when they go down, but that takes effort that might not be worth the trouble.

 

[sliceofbread136]

Diversification if you want to get wealthy slowly, non-diversified if you want to get wealthy quickly.

Momentum investing actually consistently beats the market by ~1%. Buy when stocks are going up and sell when they go down, but that takes effort that might not be worth the trouble.

pretty sure momentum is a hard factor for even active fund managers to capture let alone a laymen

 

[Stroganoff]

Diversification if you want to get wealthy slowly, non-diversified if you want to get wealthy quickly.

This is dangerous advice. The way to get wealthy quickly is to simply much more aggressively contribute to the same appropriately diversified portfolio. I cannot in good conscience find a rational reason to eschew diversification and basic investment principles.

 

[dpmd]

This is dangerous advice. The way to get wealthy quickly is to simply much more aggressively contribute to the same appropriately diversified portfolio. I cannot in good conscience find a rational reason to eschew diversification and basic investment principles.

I am going to hope they meant a more aggressive type of asset allocation not total lack of diversification.