If you’d like to be a lazy investor, Richard Thaler has a thing or two to say about that.
According to the expert on behavioural economics, he claims that a very simple way of investing makes sense for the general investing public.
And it goes like that.
25% cash
25% long term bonds
25% equities.
25% gold.
And the result is a compounded return of 9% since 1971. However the drawback is this. Following a portfolio like that limits the return one could possibly get when one knows what he is doing.
I have been an investor for 15 years now and my journey has meandered from Warren Buffett to Ben Graham. My start, like many, really was the naive idea that Buffett's skills could be replicated in some fashion. I was proven wrong when some of the supposed stock picks that I chose had dismal performances. Then, I learnt that it is no point trying to be someone I am not. Gradually, through failure and some success in deep value investing, my approach towards stocks gradually shifted to an approach based around Graham's techniques. So, I give credit where credit is due and to Ben Graham, I and many other investors around the world, owe him a great deal. So, if you want to read up on biographies, read about Ben Graham. His seminal work, Security Analysis is a gem. My books are just rich interpretations of what he has taught.
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