Yes. I’m just arguing for the sake of it. But of the 2 prominent stock pickers, one just died and the other may not last much longer either…
That said, I can see the appeal of BRK for tax efficiency. All return is from capital appreciation and not income.
I think, Warren Buffet has such big investments, that he also has quite some influence on the companies. This could also make a difference. If you think, a company that you invested 20’000 in, is doing shit, you cannot do anything about. But if you invested 500’000’000, you can probably change the CEO.
I just looked at the PorfolioAnalyst and im at 10.3% performance in CHF with monthly buys in VWCE (EUR) for the time period 02.01.2023-31.12.2023.
Can someone with monthly buys and similar portfolio composition share their yearly return in CHF for 2023? Because the benchmarks which I can select at IBKR all show massive higher performance somehow (blue line is my portfolio and green line is IWDA, MWR):
In comparison VWRL in CHF returned 22.29% according to yahoo finance:
Vanguard FTSE All-World UCITS ETF (VWRL.SW) Performance History - Yahoo Finance
The IBKR performance benchmarks are broken when the account base currency doesn’t match the currency of the benchmark. As far as I can tell, your account performance is correctly charted in your base currency but the benchmark is charted in the currency of the benchmark, which makes the comparison useless if the currencies differ.
This is wrong as well. The performance figures are in USD despite the quote being in CHF.
Check justETF instead: +10.75% in 2023 (https://www.justetf.com/en/etf-profile.html?isin=IE00B3RBWM25#performance).
Hold BTC!!! 
Been wondering, about to transfer 60% of my old 3A to FinPension (40% eaten by an insurance company), if it’s a good idea to go 1% cash, 3% Emerging, 7% CH and 89% Quality for the 3A going forward, given the bulk of my investments out of the 3A are in all-world.
I am currently 49% world ex-CH, 40% quality, 7% CH, 3% EM, 1% cash in FinPension but what’s the point if I am already all-in in all-world in my custody account?
Another question, the Boglehead/Vanguard 3 fund portfolio does include a fair bit of bonds, which I happily saw are also available in FinPension. While bonds do bring performance down, they also bring volatility down (see first pic).
Someone on the Bogle forum took the trouble to collate the big asset managers’ recommendations on stocks/bonds/age ratios, and came up with this table.
I understand these are US bonds they’re talking about (and CH bonds seem to be extremely low yield), but what’s the forum’s idea about adding a 10-20% part in bonds (or even MMF) in a 3A, and if it is positive then are there any suggestions within FinPension?
I really feel quite unsure: if the 3A should be chasing performance or stability given its contributions are capped. I feel more relaxed about keeping a lot more money in all-world and accepting market returns in a liquid account (ie custody account) than in a locked account (ie 3A).
You have your pillar 2 that‘s essentially bond like. For an investment that you only can access at retirement, bonds only drag down returns.
I see zero benefit.
CHF bonds have essentialy zero (or negative) real return (after inflation) and I dont see that changing any time soon.
As long as similar assets are available in and outside of the 3a, volatility isn’t a big factor as to what to keep where: you can sell stocks in taxable (and store cash or buy bonds or others) and buy them at a similar price level in the 3a even when they’re depressed and vice-versa. The main difference is taxation.
If I were to hold bonds on top of my 2nd pillar, I would keep them primarily in the 3a: interest is the main way by which they grow and it wouldn’t be taxed while accumulating. As the principal wouldn’t grow much, there wouldn’t be much capital gains that would be taxed upon retrieval (which could have been avoided in a taxable account).
My main choice criterion would be what I feel comfortable with. You can try the allocation you think will work for you and adjust later, as long as you don’t keep adjusting ultra frequently and stick to it once you’re happy with your holdings.
Most of those funds/asset managers target US clients. With the 2nd pillar built into the swiss retirement system, we tend to have a naturally more conservative allocation (for those of us who do have a 2nd pillar), which should allow for a more agressive allocation otherwise, as long as we can stomach it (and what we can stomach should be a hard limit we abide to). I would count the 2nd pillar as bonds in my allocation.
Thank you both. Yes, I always forget the 2nd pillar, you’re right.
Edit: decided to go all-in quality in the 3A, while maintaining all-world outside of it. The two Quality ETFs from FinPension are very heavy in the US but I decided to ride this and see.
This is quite interesting. I thougt so far the Bogle recommendation is age in bonds-percentage. This would be much more aggressive. Where did you find this table? thanks
A guy made it himself, will edit to add the post tonight after work (need to find it, had an interesting discussion).
Edit @fittim there you go: https://www.reddit.com/r/Bogleheads/comments/17waubx/having_trouble_choosing_a_stockbond_allocation/
This is the way. Another 3% here or 7% there don’t make (more than negligibly) a difference, and you know it.
Welcome to the Qrew! 
Welcome to the quality club 
Should have done it earlier, already 6.1% YTD 
True, I am just waiting to clear the bullshit with the life insurance 3A and get the money in before I put 2024’s allocation. Thankfully they aren’t dragging their feet.
Been thinking about deploying all of my liquidities into investment-grade US bonds to secure a 7-8% yield for the next few years before interest rates are cut while keeping the option to buy in stock market dips on margin. How sound would that be?
I struggle to see how the stock market would return 8-9% on average in the next 5-10 years (longer, sure).
You don’t have to do all or nothing. You could move part of your portfolio. After all, what would you do if stocks continued to rally another 10 years, or USD fell, or inflation erodes the real value of your bonds?
Thanks. Yet I’m surprised to see how no one seems to rebalance into bonds (outside of the 2nd pillar, but which doesn’t offer the same yield), while on the other hand, the stock market is overbought and at an all-time high.
As for me, I’m already out of the market, basically. I agree that it shouldn’t be all in one class or the other, but then there’s using margin to reenter the stock market when I’m feeling it. And that’s not counting the 2nd and 3rd pillars, as well as a substantial bag of crypto.
I could be wrong, of course, but I really don’t see the market averaging 8-9% per year for the next 10 years (over 20 or 30, probably, but that’s not my timeline).
I don’t plan on retiring in CH, so I’m happy to be invested in USD, which, from how it looks, is bound to remain the second-strongest FIAT currency for a while. Inflation is a risk, yes, though it goes both ways.
I kinda agree with you, but: you could have said exactly the same thing 10 years ago!
I was about 30-40% in bonds, but just bought stocks this week so down to around 15% bonds now.
I also don’t see stock markets averaging 8% per year for a decade.
Your bond returns are almost fully taxed, while stock returns are mostly not.
8%x 0.75 (assuming 25% marginal tax) = more like 6%, now add Dollar inflation of 3% and you are looking at maybe 3% real return.
I also dont think 8% are realistic, maybe 7% if you are lucky. Also as interest rates get lower your reinvested returns dont compound as much with new bond investments.
So 7% would be looking at 2.25% real, while the stockmarket returns about ~5% real on average.
