chiangmai
Crazy Mango Extraordinaire
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Post by chiangmai on Oct 30, 2023 6:11:26 GMT 7
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chiangmai
Crazy Mango Extraordinaire
Posts: 6,232
Likes: 5,242
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Post by chiangmai on Nov 2, 2023 19:59:31 GMT 7
This story appealed to me so I'll share: In 2020, Warren Buffet realised that if he went to Japan he could borrow money at 0.5% because that had been the interest rate there for premier Grade A credit worthy customers, for a decade. So he did! He then took that money and invested it in Japanese companies that were paying 5% dividends, Charlie Munger said, "It Was Like Having God Just Opening A Chest And Just Pouring Money Into It". All told he invested USD 17 bill and he made a fortune. You and I couldn't do that of course because a) we're not Grade A credit customers and B) we don't have USD 17 bill. (at least I don't). Sweet eh? finance.yahoo.com/news/charlie-munger-raves-warren-buffetts-164102631.html
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chiangmai
Crazy Mango Extraordinaire
Posts: 6,232
Likes: 5,242
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Post by chiangmai on Dec 16, 2023 9:26:25 GMT 7
It's almost one year end so I thought I'd report on the progress of three different portfolio's I've been tracking all year to see how each one fared.
The first is rgs's high risk equities funds containing the likes of SMT, Monks and Polar. You may recall that this portfolio did really well and beat most other funds then crashed quite spectacularly around the end of 2021 and lost up to 40% of its value. Well, it is recovering but it took a long time and it's still not returned to its peak, only recently has it showed signs of real recovery. Performance over the past year has been, +9% and over 6 months +3.2%. Volatility here has been quite extreme at times.
The second was a two fund global equities and bonds tracker portfolio which performed better than the rest, over one year it was up 9.4% and 4.6% over six months but it didn't suffer the earlier crash that rgs's fund did. Volatility has been average.
Finally is my low risk portfolio which contains 50% global equities and a mix of bonds and money market funds. I'm up 6.1% over one year and 3.6% over 6 months but again, there was no earlier crash for me to recover from. Volatility in my portfolio has been minimal, it's performance has been much smoother and without any real spikes of dips.
There seems to be little question that the portfolio containing the two trackers is the best performer and is the least troublesome, it's a buy and forget scenario that doesn't cause much angst.
And now comes confession time, I panicked earlier in the year when I misread markets and events and that cost me, I offloaded funds I shouldn't have and I paid the price. If I'd kept those funds, my overall performance for the year would have been much better....oh well, live and learn. That said, I'm really happy with my holdings at present. Even if the S&P is on a winning streak, my 50% equities suits me just fine plus I am making money out of bond and strategic bond funds plus I'm getting 5%+ from the money markets for doing nothing.
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