Solo Brokers help to understand, how to form a long portfolio and not be distracted by news noise. You can read past articles on our channel. Now let's talk about passive investing.
specialist money management
All tactics in the stock market can be divided into speculation, active and passive investments. Most often, personal financiers try different approaches, until determined, what strategy brings the best result. I will tell, how a passive financier works.
The passive financier strategy is "buy and hold". It means, that he is not trying to outperform the market, but hopes for a rise in prices in the future. With all this, a passive financier contributes funds for years or even decades.. He makes few transactions and pays small commissions to the broker.
The main tools of a passive financier are ETF. These are exchange-traded funds., in the set of which there are also index. There are a number of benefits to investing in funds:
1. You can not learn the financial models of companies and not immerse yourself in the basic study.
2. You don't have to watch the market situation every day.
3. Briefcase, which consists of shares of funds, diversified by deflot.
4. Reduced Risk.
Since a passive financier does not have to monitor news and charts or worry about price fluctuations, he takes decisions occasionally. In the main, at the time of purchase.
The most striking example of successful passive investing is Warren Buffett's famous bet, which he entered into with the Protégé Partners in December 2007 G. Buffett argued, which will put on the index S&P 500 and beat the competitor, who put on active management in 5 various foundations. Money concluded on 10 years, and Buffett won: towards the end 2017 G. index fund S&P 500 increased by 125%, and Protégé Partners was able to earn approximately 88%, and this was the best result of 5 selected foundations.
Passive investing approaches, who sets long-term monetary goals and is not ready to spend a lot of time. for asset management. ETFs on stocks and bonds can perform well in 5-10 years. With all this, you do not have to track down the monetary characteristics of companies and select stocks individually..
Follow-up conversation - about setting monetary objectives.
If you have a portfolio of securities with a price of 3 RUB million, we advise you to conduct an audit - it is free of charge. You will receive the professional opinion of an individual broker, which was based on analytics from Argus Research and BCS Global Markets.
