Global Value Investing

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A multifaceted approach to value investing with stock valuation based on intrinsic value estimated from cash returns, appraised value of assets, and other facets of value.

 

 

Global Lifetime Portfolio

 

This portfolio of intellectual capital, physical capital and financial capital is suggested for consideration by individuals who do not have the time, inclination, skills or focus to analyze individual stocks and other investment assets to buy and hold. Skills include intelligence and memory. As a point of reference, it is reported that stock-picker Warren Buffett has a five-sigma measured IQ, a photographic memory and a nearly monomaniacal interest in investing.

   

Education

Best and most, where justified

Emergency Cash Fund

Six to twelve months of living expenses

Term Life Insurance

Clean-up costs at death

Primary Residence Equity

Varies in amount

Marketable Securities: Stocks

Low-cost stock market index fund

Marketable Securities: Bonds

Low-cost sovereign 10-year bond fund

   
Resources for education, once expended, are a sunk cost, and they should always be treated as such to avoid becoming an obstacle to the advancement of learning. The proportion of marketable securities in defensive assets (near-cash and fixed-income) and the proportion in aggressive assets (real estate equity and stock equity) vary with life expectancy, goals, risk tolerance, and other factors. A moderate allocation of 60% aggressive and 40% defensive assets can serve as a starting point, with variation to fit individual circumstances and situations.

In the USA, low-cost mutual funds run by not-for-profit companies are available. A S&P 500 Index stock fund will experience lower portfolio turnover and thus higher tax efficiency, and a U.S. Total Stock Market Index stock fund will experience higher portfolio turnover and thus lower tax efficiency. Exchange Traded Funds (ETF) will experience the highest tax efficiency regardless of portfolio turnover due to the in-kind mechanism of income-tax-free exchanges of securities to avoid realizing capital gains that are recognized. A broad market ETF can offer the benefits of greater tax efficiency, lower ownership costs, greater portfolio transparency and higher liquidity. Intermediate-term U.S. government bonds and investment-grade corporate bonds are available as mutual funds and index funds.

The marketable securities available to residents of the USA may differ from those available to residents of other nations. Residents of nations with strong economies, deep capital markets and stable currencies may prefer their domestic stock and bond funds to avoid the risks of foreign currency exchange rates.

 

i.n.v.e.s.t.m.e.n.t.f.o.r.l.i.f.e

[Liberty Dollar]

coins of the realm

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