Most professional investors fail to outperform market indexes in the long term. Why? Because costs are high for active strategies, financial markets are relatively efficient, and let's face it, the world is too uncertain to accurately and consistently predict market movements of individual companies. That is why the core of my portfolio consists of a well-diversified bundle of ETFs.
Diversification is key because it reduces risk. In my portfolio, the majority is in aggressive assets: stocks and real estate. That is because I have a high risk tolerance. But I make sure to diversify within those asset classes. If you are less keen on taking high risks, including more defensive assets like bonds, cash and gold could be a good option.
Costs will have a large impact on your investment performance. That is another reason why ETFs are great. I pay on average 0.2% in annual management fees which is very low compared to the amount of fees an actively managed portfolio will result in.
As I explain in my stock market investing guide, I follow an automated buy-and-hold strategy which means that I invest a certain amount of money every month. This helps me build consistency. I do this in a long-term framework.
But I also enjoy analysing individual companies. I only invest in undervalued stocks of high-quality companies. Currently, Airbus is the only stock in my portfolio that meets those requirements.
This is not a sales pitch to convince you to invest like me. I just want to share my method in full transparency. As I like to say, always do your own research. It's great to find inspiration in what other people are doing but don't become a mindless sheep.
To give you some more details, I invest through a PEA account on a French broker. This allows me to avoid capital gains taxes as long as I keep my money in that account for over 5 years. I will update this page every month and after making new transactions.
Last updated on the 7th of June, 2020
For more information on the ETFs in my portfolio, search them up with their ticker:
ESE → BNP Paribas S&P500 ETF
CW8 → Amundi MSCI World ETF
PAASI → Amundi MSCI Emerging Asia ETF
PMEH → Lyxor Europe Real Estate ETF
MSED → Lyxor Euro STOXX 50 ETF
TT stands for Turbo Traders. It is a private investment group attached to the B&R Beurs investment society at Erasmus University of which I am a partner. Because of the nature of the group, I will update the net result only at the end of the year.