25 Aug 2014

A simple disciplined approach

Recently, William Bernstein, published a great short book on investment strategy. He advocates a simple low-cost index tracking strategy with fixed splits between equities and bonds and annual re-balancing. Our Stylo portfolios are consistent with both these precepts.

What about new exciting investment strategies such as hedge funds?

In 2008, Warren Buffet famously bet that over a ten year period, a simple passive fund tracking the S&P500 would outperform a fund of hedge funds. This article updates that Warren Buffet is on track to win, and new research supports his claim on index tracking strategies rather than alternative investments such as hedge funds.