Is my portfolio too conservative?

Discussion in 'Wealth Creation & Management' started by SilverKendo, Feb 14, 2015.

  1. SilverKendo

    SilverKendo New Member

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    Hello all,

    So I figured I'd get some opinions here about my portfolio. Last night I started looking at my portfolio in terms of percentage. I am only looking at investment assets, not including my house, collectables, etc. I think my portfolio is maybe a little too conservative for larger growth. Nearly 50% is in my pension. It is a well funded and well managed pension but it isn't going to make me rich in my old age. My next largest asset is PMs making up about 33%. Cash is at about 10% followed by land banking, bonds, mutual funds and then direct stock ownership making up progessively smaller percentages. Part of the shrinking percentage is based on when I started buying the assets. I've been paying into my pension for a few years now while I just started buying stocks directly (I like DRPs since I don't have the time or skill for day trading). I can't do much about rebalancing the pension but do you think I should rebalance some of the other assets, or at least change my contribution levels going forward? I like the idea of wealth preservation but after seeing how heavy my portfolio leans in that direction it has made me reconsider a little. If there isn't much wealth being created there isn't much to preserve. I'm open to thoughts and ideas.
     
  2. GrindeRyan

    GrindeRyan Member

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    I am not a financial planner and have no qualifications to give you any advice. A financial planner would be your most appropriate option.

    However, your investment tactics should relate to the amount of risk you want to take which is a function of the amount of time you have to invest. As you age the amount of time decreases in turn decreasing the risk you should take. Add that to the fundamental principle of diversification and you should aim to have a fully diversified portfolio whose risk decreases until it reaches zero when you have enough money to live happily.

    I diversify through low cost index funds. Buying single stocks adds risk but also the potential for greater returns.
     
  3. silverbullion

    silverbullion New Member

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    I am not a financial planner or advisor either, but if you're seeking higher growth, there is a way to beat fund managers in a safe manner. It is an investment strategy where one creates a stock portfolio, where one half of what you wish to invest in stocks goes into a market tracking Exchange Traded Fund (EFT), weighted by value investment principles, and the other half into penny shares. It can be very rewarding beyond just the monetary gains (and losses!).

    I've been doing it successfully for a while now. I am subscribed to a South African newsletter by Francois Joubert called Red Hot Penny Shares. I don't like Fleet Street Publications, the publisher, but Francois is one of those rare gems who truly wants to help folks. If you wish to trade stocks in South Africa, I recommend you do so via FNB Securities based on Joubert's recommendations. I hope this helps.
     
  4. silver kook

    silver kook Active Member

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    Don't trust newsletters. If these guys were such gun investors they wouldn't need a day job spruiking newsletters to make ends meet. The old saying goes you can get rich slowly or get poor very quickly.
     
  5. silverbullion

    silverbullion New Member

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    I hear what you say and understand your scepticism, but don't judge a book by its cover. I was very sceptical when I signed up for his newsletter way back, but have experience first hand that his recommendations work and is not just hot air out of a boiler room. I don't know why he is doing it, perhaps to supplement his income, but he is very passionate about it and eager to share his knowledge with others. Francois has made it clear more than once that it is not about getting rich quick or anything along those lines, but to as a private investor use the stock market on one's way to financial independence. The recommendations he offers is unlike the by large scam penny stock recommendations out of the States where they call out of boiler rooms and pressurize one to invest. Now of course the proof of the pudding is in the eating.
     

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