Thoughts on my investment Strategy

I can’t afford to pay you with the fancy craft beer you like mate. At least not with Bill S sniffing around my franking credits. Aldi 6-pack will have to do

 

Issue an IOU for a DUI.

 

Can’t knock ALDI.

Some of their dirt cheap wine has been gold medal winners. It’s our wine of choice.

One day I’ll educate @kierank in what true quality wine is all about. High price doesn’t always equal superior quality.

By the way your latest blog post is great as usual:

https://www.strongmoneyaustralia.com/investment-portfolio-update-h1-2019/

A decent dose of realism when we can often get caught up in pursuit of perfection.

You’re doing well in staying the course with what you believe in. And as a fellow income orientated investor I’ll drink to that.

Did someone mention, drinks!

 

What you still doing up old fella. I thought it’d be past your bedtime.

 

Besides, rum night tonite and wonderful Indian takeaway. Fortunately the wife (without the alcohol consumption) was behind the wheel.

Perhaps your version of DUI is better for one’s health, hip pocket and avoidance of jail time.

 

Thanks mate. Is it conviction or stubbornness? I can’t figure it out lol.

 

Not to mention it’s likely tax deductible.

 

You’re simply investing in what meets your needs at this point in time.

We can get too paranoid about risk and the hunt for the perfectly diversified portfolio. I’m as guilty as most but I at least can afford to be given the position we’re in. In fact I’d likely be better served if I stopped reading anything further about investing. But alas it’s a great interest in retirement.

FIRE types even if it’s not their preferred option at least have the option of returning to work if it all goes pear shaped. In your case certainly unlikely given you’re living off the natural yield of the portfolio rather than realising capital.

Australia won’t turn into Argentina overnight if ever. Invest in what makes sense. ASX = high income NOW! Adjust accordingly if ever the need arises. Otherwise you could end up stuck in the workforce forever worrying about things that are rarely likely to happen.

 

Totally agree but low/cheap prices ALWAYS equate to inferior wine, in my limited experience .

“Why drive a Holden/Ford if one can afford a BMW?” is my motto .

 

It’s all in the mind. I’ve got a vivid imagination. I can easily turn cheap into expensive.

 

I’’m working on the opposite, turning expensive into cheap.

In my case, turning an expensive wife into a cheaper version .

My family calls me Edison; I have tried 10,000 ways that haven’t worked .

 

I was doing a rare thing in this day an age. Reading a book. And, surprise, surprise, while having ONE glass - a small one too - of De Bortoli "Old Boys" tawny port. A mere youth of 21 years of age.

 

Good call. Nothing wrong with paying for advice but you need to get value for money. Had a chat with my financial advisor this week and tidied everything up.

 

Well I’m not feeling too flash this morning after over indulging last night. And there’s digging to be done in the yard. I hope you all have sympathy for this poor old soul.

 

I'll think about it.























A nanosecond later and it's a Nup. Self-inflicted just like sunburn is.

Get ye some discipline, laddie.

 

I just demolished a nice Cab Sav over Sunday lunch.

I feel for you. I should have stayed with a trusty Shiraz. My punishment for being unfaithful .

 

Post revive.

Its been a while since I have updated this post. Sort of been telling my story through a number of individual posts. Thought it might be a good time to bring it all back together here as I have had made significant changes over the past few months.

So I have gone from 15 different funds to just 8. 7 still being active and the 1 passive. Still holding a small amount in 3 individual shares being Telstra, Centuria Metropolitan and Charter Hall Long Wale.

Most of the funds that I have sold out off I have held in cash. As discussed in a number of other posts I have made the decision based on Mr advisors advise and my own gut feeling to play the game of market timing. Not something I am normally a fan off, but since I was moving out of a few of the managed funds I have decided to sit and watch for a possible better entry point. I feel like this strategy is close to running its course. If the next 2 months don't deliver a desired entry point then I will dive back in regardless. Just to give this decision some context the figure that was taken out of the market was around $1.5mill. So for me it was a hefty sum and I was reluctant to move it back in with all the noise of a possible correction. Without debating the pro's or cons of that decision I am here now. I have since added some extra capital to cash holding and have around the $2mill mark to inject back into the market.

As I feel like the time to enter is now getting close, I am wanting to mentally lock in an allocation plan based of all the learning and discussions I have had here over the past year. I set up a pretty spreadsheet that gives me a breakdown of the current portfolio into Aus / international I made a separate box for infrastructure funds even though they are mostly international stocks. Then I split it with Active / Passive or index we could say.

This is what it tells me right now. 38.55% Aus with 71.30% active and 28.70%. International is at 41.68% of total with all being active and Infrastructure sits at 19.77%.

Plan is to get it to 50/50 Aus / International and I could probably count infrastructure as part of the international holding. Then each of that 50% I want 50/50 of that being active / passive. I just put together a spreadsheet that should hopefully calculate how much I allocate to each fund to give me the desired percentage allocation.

I guess my hesitation is if there is no correction and I go all in should I still follow the 50/50 active / passive strategy or is leaning towards active with the paranoia of a possible correction still looming a better approach? I have a feeling I know the answer already but having the smarter heads on here tell me so will always make the decision easier.

 

Im Not one of the smarter heads anywhere, least of all here but genuinely curious, are any of the funds your looking at proven outperformers during a downturn/correction?

 

Well based on the stats that my initial adviser sold me on, all the active funds we invested in should have offered some downside protection during a correction. What I learnt in the correction we had late last year is that not many did. Hence why I have now sold down half of the active managers I was with. I held onto the bigger names / better performers. In Aus it’s only Hyperion and bennelong ex 20. Hyperion has performed well and is very reputable. The bennelong fund I kept because it also has not done to bad but also offers something different.
International I kept 3. IFP, Magellan global fund and Walter Scott. These 3 have also performed strongly.

 

I need glasses, I read that as Charter Hall Long Wait