First, I was Bavarian State Minister of Justice, and after the ministries of justice in the various states were dissolved I became Reich Minister without portfolio.
But we had a pretty diversified portfolio of businesses around the world and things tended to offset each other. But one or two years ago, we had a lot of things happening at the same time.
The history of the past fifty years, and longer, indicates that a diversified holding of representative common stocks will prove more profitable over a stretch of years than a bond portfolio, with one important provisio that the shares must be purchased at reasonable market levels, that is, levels that are reasonable in the light of fairly well-defined standards derived from past experience.
Unbeknownst to most American investors, significant portions of their public pension, mutual fund, life insurance and private portfolios are comprised of stocks of privately held companies that partner with state sponsors of terror.
Over the long term, despite significant drops from time to time, stocks (especially an intelligently selected stock portfolio) will be one of your best investment options. The trick is to GET to the long term. Think in terms of 5 years, 10 years and longer. Do your planning and asset allocation ahead of time. Choose a portion of your assets to invest in the stock market - and stick with it! Yes, the bad times will come, but over the truly long term, the good times will win out - and I hope the lessons from 2008 will help get you there to enjoy them.
But to me what seems to be missing in a lot of portfolios is Cartooning.
We have to get our states to adopt what are called "renewable portfolio standards" pledging to use a lot of renewable energy by 2015 or 2020. We have to work with businesses and shops to get them engaged in the same way.
Short-term performance envy causes many of the shortcomings that lock most investors into a perpetual cycle of underachievement. Watch your competitors not out of jealousy but out of respect and focus your efforts not on replicating others' portfolios but on looking for opportunities where they are not. The only way for investors to significantly outperform is to periodically stand far apart from the crowd, something few are willing, or able, to do.
The question is: do we pay a little bit more now? Or do we pay a whole lot later? For the equivalent of a postage stamp a day for each American, we can put a price on carbon today that will send a signal to private capital to invest in the clean technologies of tomorrow. Taking a vast portfolio of new energy solutions to scale will ultimately drive down costs through competition.
I knew my ticket out of the suburbs was art school, so I worked really hard to develop my portfolio and get a scholarship.
It is obvious that the performance of a stock last year or last month is no reason, per se, to either own it or to not own it now. It is obvious that an inability to "get even" in a security that has declined is of no importance. It is obvious that the inner warm glow that results from having held a winner last year is of no importance in making a decision as to whether it belongs in an optimum portfolio this year.
Gold is no longer an investment. Gold is no longer a portfolio item. Gold is certainly not a trading vehicle. Gold is your lifeline and I mean that literally.
Twenty-six states have passed renewable portfolio standards, which simply says somewhere between 15% and 30% of their electricity will come from renewables by such-and-such a year. In Washington, D.C., they haven't done a damn thing.
The key to financial freedom and great wealth is a person's ability or skill to convert earned income into passive income and/or portfolio income.
Long-term investment success is almost totally a function of how one emotionally handles declines in the equity market, as opposed to how one's portfolio handles them.
There is one thing of which I can assure you. If good performance of the fund is even a minor objective, any portfolio encompassing one hundred stocks (whether the manager is handling one thousand dollars or one billion dollars) is not being operated logically. The addition of the one hundredth stock simply can't reduce the potential variance in portfolio performance sufficiently to compensate for the negative effect its inclusion has on the overall portfolio expectation.
You know, we've got so much on Bravo and coming up on Bravo, and I think we have so much more going on than 'The Real Housewives.' And I think 'The Real Housewives' is a great, you know, great addition to the portfolio. I think it brings a lot of viewers under our umbrella. And I think they stay and sample other shows.
Warren Buffett likes to say that the first rule of investing is "Don't lose money," and the second rule is, "Never forget the first rule." I too believe that avoiding loss should be the primary goal of every investor. This does not mean that investors should never incur the risk of any loss at all. Rather "don't lose money" means that over several years an investment portfolio should not be exposed to appreciable loss of principal.
Nowhere does it say that investors should strive to make every last dollar of potential profit; consideration of risk must never take a backseat to return. Conservative positioning entering a crisis is crucial: it enables one to maintain long-term oriented, clear thinking, and to focus on new opportunities while others are distracted or even forced to sell. Portfolio hedges must be in place before a crisis hits. One cannot reliably or affordably increase or replace hedges that are rolling off during a financial crisis.
I still believe that for good business analysts a concentrated portfolio is a good strategy combined with a long term horizon. Once again, the secret to success in following the formula strategy is patience, a quality in short supply for both professionals and individual investors alike. I think investors should have a large portion of their assets in equities over time.
I did a handful of photo shoots and I never made any money for it just because I was trying to build a portfolio. I decided that that's not what I wanted to do.
An index fund is a fund that simply invests in all of the stocks in a market. So, for example, an index fund might invest in every single stock or almost every single stock in the U.S. market, it might invest in every single stock abroad, or it might invest in all of the bonds that are out there. And you can make a perfectly fine investing portfolio that mixes equal parts of all three of those.
When we launched our [ Vogue] site around five years ago, I had already started this process on paper. We are now building an enormous portfolio of photos, we've uploaded two million photos and we have three people that review them.
[I] was always my dream to attend the Art Institute. I have always had this zeal to become the best that I can be and I saw that this institution will act as an avenue to me achieving that goal. I applied to the institution and got accepted based on my impressive portfolio.
I believe that there should be transparency in pricing, that schools should provide information on what majors translate to what salary outcomes, and that vocational training and technical schools should be a larger part of our education portfolio.
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