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Disclosures: qplum LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and are never guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.
Buy-and-hold, the "What if" strategy
The most popular passive investor: Warren Buffet
How active is your portfolio?
Selecting an active strategy
U.S. Investor Index
Terms: tracking error, alpha decay, target risk, dynamic asset allocation
[1]: Yahoo Finance, Jan 2008 Close Value: 19.33 and May 2018 Close value: 187.38
[2]: Yahoo Finance, Jan 2004 Close Value: 1.61 and May 2018 Close value: 187.38
[3]: Yahoo Finance, Jan 2008 Close Value: 122.25 and May 2018 Close value: 12.65
[4]: Yahoo Finance, Jan 2004 Close Value: 38.50 and May 2018 Close value: 12.65
According to research* that analyzed Buffet-owned Berkshire Hathaway trades for 26 years, only 20% of stocks were held for more than 2 years.
And more than 60% of stocks were sold in less than a year.
You need an investment strategy that keeps evolving and adapting to your needs.
You also need a risk management strategy in place to manage losses.
A simple, disciplined approach could be cheaper than buying options
and help limit emotional decision making,
while offers a plan for exiting and re-entering the markets.
*Representative & Illustrative Only
When the markets crash, your portfolio value declines. At an 8% annual return, it can take up to 9 years to regain its original value.
Rebalancing
Tax Optimization
Trade Execution
Dynamic Asset Allocation
Changing financial advisors or
switching strategies
Identify source(s) of alpha
Evaluate different active managers
Fees
Overall asset allocation
Source: https://fred.stlouisfed.org/
"security analysis may begin--modestly, but hopefully--to refer to itself as a scientific discipline "
Imagining investing with "trustworthy tool" and not experts.
- Benjamin Graham
Disclosures: qplum LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and are never guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.
By Gaurav Chakravorty
Our co-founder Mansi Singhal will discuss the common myths that surround active investing, among them: the high trading costs and used only for outright alpha. We will challenge these common fallacies and discuss how active investing is being severely misunderstood by many investors. Active investing can play a crucial role in portfolio management. We will demonstrate how some of the biggest market players use active investing to: 1- Target constant risk. 2-Defend against market crashes. 3- Reduce costs and improve performance via methods like rebalancing, tax-loss harvesting and algorithmic execution.
