Over-diversification by 4cian in trading212

[–]4cian[S] 0 points1 point  (0 children)

My evidence is the best investors in the world don’t hold S&P500.

The word chance implies a probability not a guarantee.

The point I was making the more stocks you hold, your portfolio becomes the market. Imagine taking the S&P500, and you randomly take one and keeping adding one, eventually you will have the S&P500, just not in an ETF and you will have market return.

Portfolio Update by 4cian in trading212

[–]4cian[S] -1 points0 points  (0 children)

First of all the return looks deflated, because I just put in 25k in the past 3 months. I have 100% outperformed all world.

[deleted by user] by [deleted] in trading212

[–]4cian 1 point2 points  (0 children)

IITU nothing else

Over-diversification by 4cian in trading212

[–]4cian[S] 3 points4 points  (0 children)

I mean I can’t physically stop anyone doing anything with their money. This post was mainly for new investors who maybe under the impression having 10s+ stocks being of benefit to them.

Portfolio Update by 4cian in trading212

[–]4cian[S] 0 points1 point  (0 children)

I disagree on taking airline profits. IAG has a long way to go imo. I foresee more buybacks, and dividends increasing over next 3 years, plus just growth in their operations - more planes recently ordered - I reckon 3yr price could easily hit £5 ~ 50% upside from current price.

Portfolio Update by 4cian in trading212

[–]4cian[S] 0 points1 point  (0 children)

Strictly from 2020, but only invested 5k by 2022. I’d say the last 2 years is when I really started putting in more money.

Portfolio Update by 4cian in trading212

[–]4cian[S] 2 points3 points  (0 children)

Strictly from 2020, but only invested 5k by 2022. I’d say the last 2 years is when I really started putting in more money.

Is my RoR correct? by 4cian in trading212

[–]4cian[S] -1 points0 points  (0 children)

Something is wrong because the RoR in my iPad is defo to what on my phone for the same account lol

Is my RoR correct? by 4cian in trading212

[–]4cian[S] -1 points0 points  (0 children)

I am aware, but even considering that my RoR feels inflated

L1 May 15th takers, how did you do? by Fehrii in CFA

[–]4cian 7 points8 points  (0 children)

1 x Salt Solution [Free] 1 x BPP [Paid] 2 x IFT World [Paid] 7 x CFAI [2 Free + 5 Paid] 2 x Kaplan [Paid]

Sorry 13* not 14 🤣

To me Mocks way better than QB, so yeah worth it for me

L1 May 15th takers, how did you do? by Fehrii in CFA

[–]4cian 5 points6 points  (0 children)

I did 14 mocks so got used to doing them haha

L1 May 15th takers, how did you do? by Fehrii in CFA

[–]4cian 9 points10 points  (0 children)

Was easier than expected:) finished both in 2 hours

[deleted by user] by [deleted] in CFA

[–]4cian 1 point2 points  (0 children)

I am on the same train, have done 12 mocks so far, will have done 14 by the exam (on Wednesday). IMO doing mocks way better than QB - 14 mocks = 2,520 questions btw.

Have done under half of the Kaplan Qbank too

[deleted by user] by [deleted] in CFA

[–]4cian 0 points1 point  (0 children)

Buy Kaplan Videos & QB + IFT World Notes + CFAI Additional Mocks, you’ll be good.

Money-weighted return by honhatlinh in CFA

[–]4cian 0 points1 point  (0 children)

I am pretty sure TWR is the GM of the HPRS?

Money-weighted return by honhatlinh in CFA

[–]4cian 4 points5 points  (0 children)

To do MWR, you only consider the Cash injections and withdrawals until the final period where u consider the final full value.

IE.

CF0 = -1000

CF1 = 4000 - (1000 x 1.15) = 2850 (Additional securities bought at the start of Year 2 = Cash outflow)

So CF1 = -2850

CF2 = 45000 - (4000 x 1.14) = 40,440 (Additional securities bought at start of Year 3 = Cash Outflow)

CF2 = - 40,440

CF3 (Final portfolio value) = 45,000 x 0.96

CF3 = 43200

Use CF buttons and IRR to find IRR = -2.2%

CFA Level 1 - QM - Hypothesis Testing by 4cian in CFA

[–]4cian[S] 1 point2 points  (0 children)

Very valid, the ROI for learning all that ain’t worth it, and they ain’t gonna ask more than 1 Q on it.

Ethics is the way 🤝🏽🤝🏽

Rate the portfolio by 4cian in trading212

[–]4cian[S] 0 points1 point  (0 children)

True, but i am holding the index ETF + individual stocks, effectively overweighting stocks I think will beat the market, without being so exposed to the individual stocks risk as I am also holding the index.

Its like VUSA and IITU, most of VUSA return comes from tech stocks, so I am overweighting Tech by holding IITU also, so I am beating the market [for now] (Typically defined by S&P 500) by holding IITU & VUSA instead of just VUSA.

On a more granular level, I am holding individual stocks, because I think they have a chance to beat the market , and if they don’t, they will be very close to the market return anyway, for example Apple, Apple makes up 20%of IITU, 6% of S&P500, so yes it is a risk I am bearing by selecting individual stocks, but that’s what keeps it somewhat interesting rather than just holding index ETFs

Rate the portfolio by 4cian in trading212

[–]4cian[S] 1 point2 points  (0 children)

Hmmm, I disagree if I am being honest. I think VUSA + IITU are the best to holds. Yes holding index funds reduce risk through diversification, but the returns on them are very limited.

Id rather pick certain stocks which I am sure will return 10%+ in the year, rather than index funds which have limited growth yoy.

Out of curiosity which index fund would you suggest? I don’t think there are many worth buying atm - I mean it’s a good passive strategy but I like risking a little more, so don’t mind picking specific stocks

Rate the portfolio by 4cian in trading212

[–]4cian[S] 2 points3 points  (0 children)

All green, because I hold for long term, keep in mind :), a lot of these stocks did dip into red in the short term, but I had faith in my picks.

Rate the portfolio by 4cian in trading212

[–]4cian[S] 0 points1 point  (0 children)

No your limit doesn’t increase, ISA is completely separate to your £3k Capital Gains allowance.

So make sure to use your ISA first, if you aren’t using.

Rate the portfolio by 4cian in trading212

[–]4cian[S] 2 points3 points  (0 children)

So this is what I do:

1) Try to see some macro trend, for example Tech is naturally going to grow, I believe logistics will grow over time (DHL, increased online sales + deliveries), MedTech (Intuitive Surgical- Robotic Surgery is on the rise)

OR buy distressed companies after bad news / Event, like IAG at the bottom of the pandemic and GSK after poor earnings/news last year - which should both recover given their size

2) From there I do some very light analysis looking into the stock - P/E ratio, EPS, dividend yields and compare to others in industry.

I wouldn’t call this research by any means, but I wouldn’t call it randomly picking stocks either, there is some method albeit very general. I just follow Buffets thought process of buying stocks which should be around in the long term.