Introducing: my brand new “idiot grandson” share portfolio

Discussion in 'Share Investing Strategies, Theories & Education' started by Burgs, 27th Jun, 2019.

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  1. Buzzman81

    Buzzman81 Member

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  2. Redwing

    Redwing Well-Known Member

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    Recent blog from BFI

    “$1.5 trillion wipeout: Global markets plunge as virus panic grips investors”, screamed the headline in the SMH on Tuesday.

    Crikey.

    Of course another way you could write that headline is: “Share prices fall back to levels not seen in … 57 days”.

    Look, I don’t want to make light of the current health crisis, and first and foremost that is exactly what this is.

    Yet will investors still be talking about this in 10 years time?

    Highly unlikely.

    Here’s the truth: short-term uncertainty is the price you pay for higher long-term returns.

    When you look back at the last 30 years of the stock market on a chart, it’s a beautiful picture:

    A $10,000 investment into Aussie shares in 1990 would be worth $136,000 today ‒ an annual return of 9.1%.

    And that’s why I've been taking advantage of the pouty prices, and buying up stocks.
     
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  3. sfdoddsy

    sfdoddsy Well-Known Member

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    If the fund grows to above 5.5M (or whatever the inflation adjusted figure) I doubt the recipient will that concerned given it is a gift.

    Personally I'd just whack the lot into VDHG with divs reinvested.

    That's what my wife did with an inheritance years ago.

    The returns are close enough to my far more complex shenanigans to be moot and she doesn't care about dips/corrections/plunges (the joys of 20 years to retirement vs none).
     
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  4. Redwing

    Redwing Well-Known Member

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    Nice and simples

    upload_2020-3-3_7-43-27.png
     
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  5. willair

    willair Well-Known Member Premium Member

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    Would be interesting to know how this investment went as 100k a few years ago,even invested in just one bank ..
     
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  6. ShireBoy

    ShireBoy Well-Known Member

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    The Idiot Grandson portfolio was VAS - 75% VEU - 15% VTS - 10%
    Which have all done great over the last two years.

    Well the final round of LICs and ETFS were:

    Australian Funds:
    • AFI: Australian Foundation Investment Company (LIC)
    • ARG: Argo Investments (LIC)
    • AUI: Australian United Investment Company (LIC)
    • DUI: Diversified United Investment Company (LIC)
    • MLT: Milton Corporation (LIC)
    • VAS: Vanguard Australian Share Fund (ETF)
    International Funds:
    • VEU: Vanguard All-World ex-US Shares Index (ETF)
    • VGAD: Vanguard MSCI Index International Shares (Hedged) (ETF)
    • VGS: Vanguard MSCI Index International Shares (ETF)
    • VTS: Vanguard US Total Market Shares Index (ETF)
    No surprises there.

    Althought I don't know why you would'nt just go VAS/VGS or VDHG. Picking ETFs against a ratio would possibly mean rebalancing if you want to keep it in line with the target.
     
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  7. dunno

    dunno Well-Known Member

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    To my way of thinking an investor who is accumulating outside of Superannuation should consider VDHG to be the “investable” benchmark.

    However, you invest, the question should be “Is this better / behaviourally simpler than VDHG?”

    I haven’t heard a reasonable explanation why the Idiot grandson portfolio is better portfolio than VDHG.

    [​IMG]
     
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  8. Redwing

    Redwing Well-Known Member

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  9. Redwing

    Redwing Well-Known Member

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    Apparently, the original Barefoot Investor Index Fund Portfolio was called the “Breakfree Portfolio”, it consisted of 5 ETFs which he suggested to re-balance once a year to keep to the recommended percentage allocations
    • Australian Large-caps: STW – 35%
    • Australian Small-caps: VSO – 15%
    • Global Large-caps: IOO – 20%
    • Australian Property: VAP – 20%
    • Australian Fixed Interest: VAF – 10%
     
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  10. Luca

    Luca Well-Known Member

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    What do you think about his allocation? Is it really going to make a difference compared to a VDHG?
     
  11. mtat

    mtat Well-Known Member

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    No.

    DHHF or VDHG is great.
     
  12. Redwing

    Redwing Well-Known Member

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    He created the “idiot grandson portfolio” as an up to date on the breakfree portfolio, no DHHF or VDHG around at the time (no need to rebalance annually with these 2)
     

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