Toward a passive portfolio

Preparing for life after work. RRSPs, RRIFs, TFSAs, annuities and meeting future financial and psychological needs.
like_to_retire
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Re: Toward a passive portfolio

Post by like_to_retire »

gsp_ wrote:Makes sense and that's why you're running a highly leveraged long/short strategy, right? Who needs FI when you can just pick winners and short losers?
No, I don't ever use any leveraging or shorting. I try for long term holds of high quality CDN dividend stocks. Nothing special, easily beating the index about 100% over the last 5 years. Easy money in Canada.

I have about 65% in FI with most of it in GIC's. I'm a big believer in protecting my capital.

ltr
SQRT
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Re: Toward a passive portfolio

Post by SQRT »

like_to_retire wrote: I tend to discount what Warren Buffet is doing. I don't really care since I don't have 70 Billion dollars as he does. His ideas are influenced by that ridiculous amount of money to manage. It has nothing to do with me or you.

ltr
Discount both what he does, and especially what he says. He certainly has said a lot over the years, some of it contradictory. He certainly wasn't espousing a diversified approach when he started out and these were his best years.
gsp_
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Re: Toward a passive portfolio

Post by gsp_ »

like_to_retire wrote:
gsp_ wrote:Makes sense and that's why you're running a highly leveraged long/short strategy, right? Who needs FI when you can just pick winners and short losers?
No, I don't ever use any leveraging or shorting. I try for long term holds of high quality CDN dividend stocks. Nothing special, easily beating the index about 100% over the last 5 years. Easy money in Canada.

I have about 65% in FI with most of it in GIC's. I'm a big believer in protecting my capital.

ltr
Right. Simply pointing out inconsistencies between people's claims and actions.
like_to_retire
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Re: Toward a passive portfolio

Post by like_to_retire »

gsp_ wrote:Right. Simply pointing out inconsistencies between people's claims and actions.
I don't understand. Sorry.

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gsp_
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Re: Toward a passive portfolio

Post by gsp_ »

If you actually believed that you could consistently picks winners and identify duds you'd employ a completely different strategy than the one you do.

Instead you're at 65% FI before factoring in a pension that covers all your expenses(what's that 75-90%? FI). Either you don't believe your own spiel or you don't like money and based on your posting history we know it can't be the latter.
like_to_retire
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Re: Toward a passive portfolio

Post by like_to_retire »

gsp_ wrote:If you actually believed that you could consistently picks winners and identify duds you'd employ a completely different strategy than the one you do.

Instead you're at 65% FI before factoring in a pension that covers all your expenses(what's that 75-90%? FI). Either you don't believe your own spiel or you don't like money and based on your posting history we know it can't be the latter.
Ahhh OK, I get it, you were being sarcastic in your earlier post. Probably not the best way to actually understand someone else, but each to their own. :)

For myself, I am very conservative and always have been. I spend lots of time trying to come up with ways to better my returns. If I discover from my back testing that a certain philosophy appears to be a good way to proceed, then I give it a go. If it works for a number of years I'll go down that road, but my conservative nature holds me back from committing too heavily.

I have discovered that in Canada it isn't that difficult to beat the index. Others on FWF agree with me it seems. There are compelling reasons for this if you take the time to investigate. I've gone down this road for quite a few years and it works.

I guess if I wasn't a conservative guy I would go all in as you seem to encourage, but it's hard to understand when you're being sarcastic or not, so I'll stick to my conservative nature and use my small (35%) allocation to stocks and do my best to beat the index with that portion.

ltr
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Re: Toward a passive portfolio

Post by gsp_ »

like_to_retire wrote:
gsp_ wrote:If you actually believed that you could consistently picks winners and identify duds you'd employ a completely different strategy than the one you do.

Instead you're at 65% FI before factoring in a pension that covers all your expenses(what's that 75-90%? FI). Either you don't believe your own spiel or you don't like money and based on your posting history we know it can't be the latter.
Ahhh OK, I get it, you were being sarcastic in your earlier post. Probably not the best way to actually understand someone else, but each to their own. :)
You've misconstrued my intent as an attempt at understanding when it was really just another challenge of what I felt was an overreaching statement. Seems like a semi annual occurence. :wink:
I have discovered that in Canada it isn't that difficult to beat the index. Others on FWF agree with me it seems. There are compelling reasons for this if you take the time to investigate. I've gone down this road for quite a few years and it works.
Lots of things have worked for a lot longer and a lot larger outperformance, before sustained periods of underperformance. If that's the criteria surely Van/TO real estate "works".
I guess if I wasn't a conservative guy I would go all in as you seem to encourage
I'm not encouraging anything. I'm simply stating that your claims upthread are overstating your own confidence in them as evidenced by your actions. If, as you stated, you could identify winners and duds beforehand, you'd have a license to print money. No one with a legal money printing operation stops printing money because they're conservative. Bob Voulgaris(look him up) isn't betting low to mid six figures on NBA games because he's reckless or "not conservative", he's doing it because he believes in his edge and likes money.

Leaving any notion of skill aside, a few of us mentioned to you several years ago that someone who has no intention of ever spending their nest egg and plans to leave it all to their kids should for the most part be investing it based on their kids' investing time horizon and risk appetite. Based on that notion and knowing nothing of your heirs it is likely you are significantly underinvested in equities. To claim the ability to predict equity winners and duds while simultaneously significantly underinvesting in said asset class compared to a basic unskilled approach does not seem logical.
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Re: Toward a passive portfolio

Post by like_to_retire »

gsp_ wrote:To claim the ability to predict equity winners and duds while simultaneously significantly underinvesting in said asset class compared to a basic unskilled approach does not seem logical.
We'll just have to disagree I guess. My equity investing is fashioned after the Beating The TSX championed by David Stanley. It has a 29 year track record and is basically a value approach to dividend payers in Canada. Its long term winning record proves to me that it works. I've tried it for 5 years and it works for me, so I have some confidence it's a good approach in Canada. We'll agree that I'm too confident for you though. OK, I'll do my best to stop espousing its virtues.

I also disagree with your logic that if you believe in something, then you should go all in. If you're conservative, and don't have an urgent need for money, it offers a unique opportunity to employ a safe asset allocation. I am extremely confident in government bonds and GIC's, but I don't assign 100% to them. I am extremely confident in my HISA, but I don't assign 100% to it. Well, you see where I'm going with this.

Perhaps my approach is illogical as you say. No big deal, people do lots of illogical things. I'll stop talking about my approach and hopefully that will put this to rest.

ltr
JohnFiscal
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Re: Toward a passive portfolio

Post by JohnFiscal »

can't resist, noting the thread Subject.

Personally, I am going for a Massive Portfolio. Passive or otherwise!

LOL

(sorry)
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