What is your Investment approach for equities - poll

I wonder how the distribution in this forum is regarding their investment approach for equities.

Because multiple approaches could be applicable, I would recommend to only select approaches that account for more than ~20% of your equities portfolio.

What is your investment approach for equities?
  • Passive Indexing
  • Factor Tilts
  • Active Funds
  • Stock Picking
  • Other

0 voters

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95% passiv indexing, 5% fun (already arkk and crypto asap)

Used to have a SCV tilt but ditched it. I just can’t handle underperforming the market.

I marked myself for passive indexing (due to the “20%” recommendation).
Excluding my vesting company shares, BRK (which I regard as an ETF :grin:) and some “non-basic” ETFs, I am at around 10% individual stocks.
Half of which is going bye-bye pretty soon, as they were some coronavirus short-term bets (gg btw).
That will put me back to “up to 5% play money” I allow myself.

100% passive indexing but I am thinking of moving around 10-15% into active/mutual funds, into SSON and FEET to be precise. To be considered as my fun risky money.

mabi I did have a similar approach to you but gradually sold out of MSCI world ETF. I now have Fundsmith mutual fund for global large caps. I have smaller investment in SSON for small cap

Funny question because for me:

Passive - 50% currently.including sector tilt to tech
Active funds - ARKW/ / ARKG
Stock pickijng - yes
Factor tilt - yes, momenutm/growth.

@Barto I am also interested in changing my strategy for next year going more towards the Fundsmith mutual fund as discussed in Fundsmith Equity Fund but am puzzled what is the best or easiest way to buy into this fund…

Too early in my investing career to really say and my style will probably evolve with time but, right now: stock picking. Equities are equity, I don’t really own part of a company if I don’t get voting rights related to it (however low of an impact I can actually have).

Question is: Are you actually getting voting rights? And are you on the share registry to retain ownership, even if your brokers goes haywire?

Many brokers are holding securities in the street name - so you aren’t actually getting voting rights or an entry on the share registry. Rarely, if anything, for foreign stocks.

Stocks - 80%
Active funds - 15%
Options - 5% (an experiment which has so far generated enormous gains as well as losses with no clear winner)

I’m on the shareholders registry for part of my shares (I’m not yet a real buyer and holder, so I see no point in registering what I might still sell). I’ve chosen my broker so that it allows me to do that (TradeDirect from BCV). You have to request them specifically, so it is a bit of a bother but they’ll do it if you ask for it.

I’m only buying Swiss stocks for the time being. My purpose is to choose in what other countries to invest once my wealth will warrant it and then really delve in their culture to get invested in the fate of their companies on a more personal level.

I’ll have to check what happens in case of broker bankruptcy, as I remember it, I wouldn’t be spared from total loss if they went belly up deeply enough but that doesn’t make a lot of sense if the shares are on the registry. I’ve obviously not studied it enough and will have to delve more in it in the future. For now, just getting invited to GAs with one share is enough for me.

would you start passive investing now? I got some money on my hands, am leaning to tech (QQQ) but I’m also a little bit afraid from the ridiculously high valuations currently… but again, valuations were high 2 years ago as well…

What is your time horizon? More than 20 years? jump in and go for it. Less than 5? Think of what your priorities are and what you’d do if you don’t have the money you need when you need it.

Why are you leaning toward tech? If that’s because they’re having a good run as of late, the high valuations are the price you pay for it. If high valuations are a concern to you, total world stocks ETFs have a P/E of around 20 so, not so high.

depends how you look at it. I had the idea to stop working at 50 (10 more years), now I’m not so sure, Legally it’s 25 more years to go. I work in IT, IT and tech makes the world go around in the last 2 decades, and I assume it’s not going to stop. No thanks I don’t need the oil and gas companies and coal mines in the World Index funds. Nevertheless, a strong correction is already due (but again, it was due 3-5 years ago as well…)

Basically I’m waiting for the next 2008, if that ever comes. Not sure it makes sense, though?

It is more likely than not, that the stock market will be higher in 5 years, than it is now. (This statement is always true)


It can happen tomorrow or it can happen never. When it happens, prices can drop lower than they are now or we could never ever again get the opportunity to buy stocks at a lower price level than they are now. Passive investors advocate choosing a strategy with which you can stick whether we are going through a strong correction or raising bull markets. If the increased risk of having your employment and investments tied to the same sector doesn’t bother you, why not go for it? If it does, why not mix QQQ with some other investments that would balance out in case a crisis takes down the price of tech stocks for a prolonged period of time?

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thanks for thinking along. separating one’s investment from the primary source of income is not a bad idea either. However, having insight into the sector also certainly helps.

To be honest, I don’t think that tech will be down for a longer period in the next 20-30 years as this is fueling everything for now (probably also in the future). OK I think I got my answer :slight_smile: now it’s just the question if one should step into Fundsmith or VGT or just index-ETFs.

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Or all :slight_smile:
I have the “core” ETFs (VTI, VEA, VWO), a bit of overweight to some factors, and picked up some SSON and FEET via IB.
No script says you must pick just one (for life).

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Here is a good video about investing in technological revolutions:

Do you mean VTI, VEA, VWO or is it a deliberate underweighting of US-listed equites?