I'm curious to learn how others manager their own personal brokerage accounts, as I'm looking to refine my own approach and become a better investor. Are you 100% passive? Do you spend hours a week conducting primary research outside your day job in an attempt to beat the market? Maybe you don't have much time to think about investments outside of scope of your fund, or maybe most of your net worth is tied up in your fund anyway? I created the below template and input my own answers; copy/paste and modify as needed to share your routine:
- Role: FoF
- Hours spent per week: Purely dedicated to my own PA, not including any crossover reading through my job or theoretical/book learning, probably 2-3 hours perusing reports, transcripts, or otherwise conducting primary research. I'd like to bump this number up, life permitting. My new years resolution is to be reading a 10k anytime I'm in the bathroom for more than 5 min.
- General Strategy/Allocation: Mostly index-plus. ~40%-60% invested in index/mutual funds. Generally broad US and EM, but I'll tactically allocate across geography/size/sector every so often. Remainder is usually concentrated in 5-15 equities. Majority small cap or smaller US, but some much larger as well. Some infrequent opportunistic HY bonds. I try to follow a more event-drive, value approach but I'm flexible and can be all over the map.
- Other strategies: I've never shorted anything, but I think I'd like to decrease my exposure in general. Long options are sparsely used, only if I have a compelling reason. I have a 3x leveraged etf but never use margin.
- Frequency of trades: Notwithstanding any corporate events I might try to play, I try to keep turnover as low as possible and maintain a long time horizon. I rarely sell anything and might add only a couple long term positions a year.
- Cash Management: All the money from my paychecks that I don't need will go to my brokerage account and will usually sit in a money market fund. I'll then dollar cost average (usually with pretty arbitrary amounts and timing) into the market but will always have some cash on hand in case good opportunities arise. Expect I've been sitting on way too much cash for way too long.
Boring answer here, but adding a vanilla data point from IB given how common these trading restrictions are. My account has done very well and I don't worry about it at all which I put a premium on
Totally unrelated, but you should consider reading investor presentations instead of 10Ks. Much more digestible to try to understand a business instead of a bunch of accounting/GAAP numbers.
All of my money is in BTI and MO
Long live marlboro
Like a fucking degenerate gambler. Love every second of it.
I can freely trade options on indices and require no approval for ETFs. Have to hold individual stocks for 3 months.
What about buying your own firm's funds?
Yeah good point, I own a small chunk of my firms funds within my non-passive part of my PA. I need approval to buy our own funds and tbh I see not owning much as a hedge against my losing job, i.e. poor performing fund = outflows = people losing jobs.
Mostly according to efficient market/bogle theory, with a risk-adjusted tilt.
~30% US, ~55% global developed, ~15% developing with a significant tilt towards developed small cap value. Also decent allocation to 3x beta long US tech for the moonshot.
70% non-domestic? By developing, assume you mean developing economies.
Might be completely misinterpreting, but does global developed include US based global corporations? Mind if I ask as to why? Personally think that the Macro book is getting close to being thrown out the window again, similar to 2008. Not just yet, but getting there. Long story short, probably technically wrong, but I have rewired my thinking and investment approach the past six months. Domestic growth is the path of new economical thought, imo.
Genuinely curious.
Also, agree and disagree on US tech. Fake BS tech companies promising to change the world (90%) bad place, underserved and fast-growing domestic needs far outweigh the prior line of though, being in layered in the "promise" of tech beta companies. Get this is cryptic, but thinking out loud.
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