Colleague Alex Green has written a marvelous new book – called The Gone Fishin’ Portfolio. We mentioned it yesterday. Today, we offer a little more detail.
Investment strategies that are complicated almost never work. Either they are inherently parasitic (like hedge funds) or self-destructively dangerous (like betting on currency moves) or you forget what you are doing and blow them up yourself. The best strategies are extremely simple – as Warren Buffett has proven.
Alex Green, director of investment at the Oxford Club, proposes a very simple approach. You just develop the discipline of putting money in simple, low-cost investment vehicles – such as ETFs and no-load funds. All you have to do is to rebalance your portfolio only once a year, and stick with it. It’s not the kind of investment strategy that makes the investment industry rich. It’s not the kind that gives you hot tips you can share with your neighbors. But it is the kind of strategy that turns you into the millionaire of your neighborhood.
for Markets and Money