Pavel Bandilov, Financial Analyst of IP Sofia International Securities, Development, 27.10.2016
The financial analyst examined the investment strategy of some famous stock exchange experts and investors at a sum of $10,000 for a 16-year period.
Swiss investor and stock expert Mark Faber, for example, invested 25% of its assets in shares, 25% in REIT, 25% in 10-year bonds and 25% in gold. The interesting thing is, after a 15-year period (as during this period we do not change the weights of the assets in which he has invested) the yield he achieves is chasing almost $37,000 for $23,000 at a standard portfolio. Bandilov also pointed out that this yield was achieved at one of the lowest standard deviations.
According to Warren Buffett, the perfect portfolio represents 90% of the funds invested in the S&P 500 index and 10% in short-term bonds.
With famous economist Mohammed El-Arian, for example, 56% of the money in the portfolio is invested in shares, 18% are invested only in companies with large market capitalization. The rest is distributed among foreign, developed and emerging markets. It achieves higher profitability than Faber’s investment strategy, including 13% investments in raw materials in its portfolio.
Look at the whole conversation in the video:
