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My Vanguard has performed pretty poorly. I bought it to diversify a bit but if I’d just bought more Fundsmith I’d be a good few grand richer
But that is diversification. Managing risk. If Terry Smith makes a balls up and loses money compared to the overall stock market then your tracker will compensate to some extent. The Neil Woodford fund crash shows the danger of all eggs in one basket no matter how good the basket looks.
I Went into Fundsmith the first month it opened. I've not sold any of it. But I still wouldn't go all in. Through huge Fundsmith growth since 2011 and other stuff growing less and being sold to fund big purchases Fundsmith is now around 50% of my savings. Not sure I'd like it any higher.
I Went into Fundsmith the first month it opened. I’ve not sold any of it. But I still wouldn’t go all in. Through huge Fundsmith growth since 2011 and other stuff growing less and being sold to fund big purchases Fundsmith is now around 50% of my savings. Not sure I’d like it any higher.
I'm even higher than that and it has been a great earner for me since 2010(?) I am a bit nervous about being so heavily invested and I am starting to diversify. I am 55 and i will keep some exposure to equities until I shuffle off my mortal coil but it would be prudent to make it a lower percentage of my portfolio and move slightly more into bonds. It depends on your attitude to risk and proximity to needing an income from it I suppose
The Lifestrategy funds only make sense if you have to buy an annuity at a set date (which is no longer the case).
They dont obligate you to purchase an annuity and you can continue to invest in them (and draw down from your SIPP) and simply take advantage of the low costs and a portfolio that is split between equities and bonds at a % you are happy with. They are just a fund like any other just one that has been managed by Vanguard.
I give you Stocks and Chers
Now look at the bottom left picture of her and imaging Cher's going down
imaging Cher’s going down
No No No..... its so wrong!
For amusements sake, I thought it may be worth time stamping the value of the Vanguard Lifestrategy 100 UK equity fund.
Price (GBP)
As at date 22 May 2020£217.53
Let’s say our investment is £100,000 for round numbers sake
I’ll try and update each quarter and see where it takes us.
1st August
£224.58
"portfolio" = £103,240.93