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    • 1. What is a share of equity?
    • 2. Investing in individual companies is risky
    • 3. Diversification greatly reduces the risks while keeping the return high
    • 4. If you don’t have a 10-15 year investment horizon, then you shouldn’t own shares
    • 5. The market is very efficient and the price is right most of the time
    • 6. Fund managers almost never beat the market and are eating your lunch
    • 7. ETFs provide a great and low-cost alternative to actively managed funds
    • 8. 80% of your portfolio performance is determined by asset class allocation, not selecting individual shares
    • 9. Don’t buy what you don’t understand
    • 10. Once you have an equity portfolio, rather than going to sleep for 10 years, you should keep an eye on it
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You are working hard. But are your savings working at all?

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Who uses ‘My Money Works’?

I am not invested (yet), rather sceptical, and I don’t know where to start

90% of the German population does not own equity (shares), and 0% of the German population learned how to invest their money at school. So if you don’t know where to start, you are not alone.

Read More “I am not invested (yet), rather sceptical, and I don’t know where to start”

I am invested, but unhappy about my current performance

What is the performance of your equity portfolio over the last 10 years? If you don’t know, then it is time to check. And how did your benchmark perform during the same period? If you don’t have a benchmark, then you have a problem and it is time to act.

Read More “I am invested, but unhappy about my current performance”

I am an expert, but looking for more helpful Portfolio and Risk Management tools

If you are an expert, then you probably have been investing in the stock market for 10 years or more, and your 10-year portfolio return should be around 100%. As your portfolio grows, the key issue for you is how to beat your benchmark, and better manage your risk exposure. When is the next ‘bear’ coming?

Read More “I am an expert, but looking for more helpful Portfolio and Risk Management tools”

Ten principles

  • 1. What is a share of equity?
  • 2. Investing in individual companies is risky
  • 3. Diversification greatly reduces the risks while keeping the return high
  • 4. If you don’t have a 10-15 year investment horizon, then you shouldn’t own shares
  • 5. The market is very efficient and the price is right most of the time
  • 6. Fund managers almost never beat the market and are eating your lunch
  • 7. ETFs provide a great and low-cost alternative to actively managed funds
  • 8. 80% of your portfolio performance is determined by asset class allocation, not selecting individual shares
  • 9. Don’t buy what you don’t understand
  • 10. Once you have an equity portfolio, rather than going to sleep for 10 years, you should keep an eye on it

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Recent posts

  • Credit Suisse: Global Investment Returns Yearbook 2017 05/04/2017
  • The Economist: do smart-beta investment funds work? 20/03/2017
  • The Economist: three sanity tests for whether tech firms are living in a bubble 27/02/2017
  • The Economist: It is not easy for investors to recognise a bubble 13/02/2017
  • New York Times: John Maynard Keynes’s own portfolio not too dismal 20/01/2017
  • The Economist: the British mutual-fund fees are too high 01/12/2016
  • The Economist: Index we trust 01/12/2016
  • The Economist: Warren Buffett’s 50 years running Berkshire Hathaway have been one of business’s most impressive winning streaks 14/10/2016

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Recent Posts

  • Credit Suisse: Global Investment Returns Yearbook 2017
  • The Economist: do smart-beta investment funds work?
  • The Economist: three sanity tests for whether tech firms are living in a bubble

DAX today and in the past

DAX on 15 December: 13100
DAX 10 years ago: 7500
DAX 20 years ago: 4300
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