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Digging Your Own Grave


Saberu
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Any tips as to where to invest other than buying gold or BTL?

Google finance appear to be showing FTSE to be lower than where it was in 1999 (and so is S&P)

I shifted money into European shares last week after selling part of my government bonds and gold. Why gamble? Own them all, but make educated guesses about potential returns to shape your allocations. I've had one losing year, nominally, since 1990 and that was in 2008. Yep, scraped through 2000-2 just above zero thanks to REITs, gold, TIPS, and small company stocks.

Ignore all the market timers here. In fact don't visit this site at all. Jeremy Grantham is the only mainstream investor worth listening to.

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I shifted money into European shares last week after selling part of my government bonds and gold. Why gamble? Own them all, but make educated guesses about potential returns to shape your allocations. I've had one losing year, nominally, since 1990 and that was in 2008. Yep, scraped through 2000-2 just above zero thanks to REITs, gold, TIPS, and small company stocks.

Ignore all the market timers here. In fact don't visit this site at all. Jeremy Grantham is the only mainstream investor worth listening to.

Thank you.

Do you mind disclosing the net total return (obviously you will be adding along the way, so just a guess) per annum since year 2000 (or 1990 - your choice)?

Is it enough to be rich and be a 'free man' ?

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Thank you.

Do you mind disclosing the net total return (obviously you will be adding along the way, so just a guess) per annum since year 2000 (or 1990 - your choice)?

Is it enough to be rich and be a 'free man' ?

Let's see I've just dug up an old spreadsheet when I used to check these things religiously and it seems from 1990 to 2004 I made 10.2% annually in US dollars. A couple of other spreadsheets show 15% in 2005 and 11.8% in 2006. I'd have to do some work to calculate the returns net of contributions since then but by glancing at the portfolio totals it looks like about 2% in '07, -10% in '08, 20%+ in '09, 10-12% in '10 and up about 3% so far this year. I think sterling is near where it was in 1990 so the returns are similar in pounds. My real, after inflation, return is probably 6.5% to 7.0%. Nothing spectacular really but it makes a nice difference when compounded over 20 years.

In my case I am nowhere near being rich because my interest in money is largely academic having studied finance and started off on Wall Street. I have taken a hell of a lot of time off over the past 20 years - travelling, when my kids were born, and loafing around catching up on reading and things. Still because I am exploiting global wage arbitrage myself by working in high cost countries and planning to retire in SE Asia then I don't need millions to call it quits at say 50.

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Any tips as to where to invest other than buying gold or BTL?

Google finance appear to be showing FTSE to be lower than where it was in 1999 (and so is S&P)

Why ' apart from gold and BTL'?

Diversification is my principle. A sort of Permanent Portfolio but, for me, more weighting on divi paying shares. That said, BTL, is too much debt and hassle for me (neither of which I approve of).

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Let's see I've just dug up an old spreadsheet when I used to check these things religiously and it seems from 1990 to 2004 I made 10.2% annually in US dollars. A couple of other spreadsheets show 15% in 2005 and 11.8% in 2006. I'd have to do some work to calculate the returns net of contributions since then but by glancing at the portfolio totals it looks like about 2% in '07, -10% in '08, 20%+ in '09, 10-12% in '10 and up about 3% so far this year. I think sterling is near where it was in 1990 so the returns are similar in pounds. My real, after inflation, return is probably 6.5% to 7.0%. Nothing spectacular really but it makes a nice difference when compounded over 20 years.

In my case I am nowhere near being rich because my interest in money is largely academic having studied finance and started off on Wall Street. I have taken a hell of a lot of time off over the past 20 years - travelling, when my kids were born, and loafing around catching up on reading and things. Still because I am exploiting global wage arbitrage myself by working in high cost countries and planning to retire in SE Asia then I don't need millions to call it quits at say 50.

Thanks for that. So a nominal net return of 10% compound is pretty impressive (vs FTSE about 0%, dividend inclusive).

Oh yes - I might see you in South East Asia / HK one day and that is also my plan :-)

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Why ' apart from gold and BTL'?

Diversification is my principle. A sort of Permanent Portfolio but, for me, more weighting on divi paying shares. That said, BTL, is too much debt and hassle for me (neither of which I approve of).

Because for non stock picker, return of most other asset class (except government bonds - which is too expensive now, won't buy gold at this price and BTL is dead) is

disappointing.

http://monevator.com/2010/03/10/uk-historical-asset-class-returns/

Do you have some numbers as to how your portfolio return since 2000 ?

To get rich, one needs at least an annual compound rate of at least 10%pa (which Saturn appeared to have achieved, but that requires skills and hard work).

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