You’d be surprised how many times we hear stories just like that from investors. If something happens to it, your other positions will be too weak to offset the loss.įor example, if you have 55% of your portfolio in tech stocks and the Nasdaq has a down day… there goes a big chunk of your nest egg. Think about it this way… If you let one position grow too large, it will become a threat to your entire portfolio. It’s one of the biggest mistakes an investor can make. Often investors are eager to rebalance when their portfolios are underperforming… and take a “But it’s the holidays…” approach when they’re outperforming. This model is designed to help you conserve your assets, build your wealth and reach your long-term financial goals by beating inflation and generating above-average returns with below-average risk.Ī solid asset-allocated Core Portfolio will allow you to take advantage of shorter-term, more aggressive investing strategies without risking your wealth.Īnd it’s been tested time and time again.Ĭase in point, $100,000 invested at the inception of Alex’s Gone Fishin’ Portfolio in 2003 – with dividends reinvested and the portfolio rebalanced on the last day of each year – would have turned into $330,275 by the end of 2016.īut your job isn’t done once you create your Core Portfolio… Here’s what the Club’s ideal Core Portfolio looks like. That’s why the Club makes an asset-allocated portfolio – such as Alex’s Gone Fishin’ Portfolio – the foundation of the Oxford Wealth Pyramid. market has not been the world’s best-performing market even a single year in the last 30 – that kind of diversification isn’t enough. This is certainly superior to rolling the dice with a couple of stocks.īut unless you think your ideal asset allocation is 100% U.S. After all, you’ll own a piece of 500 different companies. You can own an S&P 500 index fund and be broadly diversified. “Yeah, yeah, I get asset allocation,” a relative told me recently. Unsophisticated investors, on the other hand, generally don’t even understand the concept. In my experience, sophisticated investors know that asset allocation is their single most important investment decision. In a recent Investment U article, Chief Investment Strategist Alexander Green wrote… It’s how you spread your risk among different asset classes that will make or break your wealth. That’s right it’s not stock selection that matters most. It will ensure you enter 2018 with a boost of momentum.Īsset allocation is responsible for as much as 90% of your long-term investment returns. Now’s the time when you should be giving your portfolio some added attention. It’s our go-to excuse for neglecting diets, exercise regimens and social engagements.īut most concerning, we hear it from investors as an excuse to slack off on their finances.Īt the Club, “But it’s the holidays…” is not an excuse for neglecting your portfolio. From the Baltimore Clubhouse – “But it’s the holidays…”
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