“COMPOUNDERS” Dominant global businesses Skilled at reinvesting capital Margin of safety Some “compounders” in the FPA Crescent Fund: AON (AON), WPP (WPPGY), Unilever (UNLYF) AON data by YCharts Watch this episode here.
Action Point
AVOID THE UNDERPERFORMANCE TRAP!
Choose funds based on management, culture, long-term track records, and match their risk profile with your tolerance level…AND STICK WITH THEM! Watch this episode here.
THINK LIKE A CONTRARIAN AND SELECTIVELY INVEST AGAINST THE CROWD
Wintergreen Fund (WGRNX) First Eagle Global Fund (SGENX) Watch this Episode
CONSIDER INVESTING IN REITS THROUGH A TRADITIONAL REIT INDEX FUND
Morningstar recommends: Vanguard REIT Index ETF (VNQ) VNQ data by YCharts Morningstar also recommends holding REITs in a tax deferred account, such as a 401k, because their dividends are taxed as regular income. Watch This Episode
CONSIDER OWNING SOME SCARCE RESOURCES IN YOUR PORTFOLIO
SPDR Gold Shares (GLD) GLD data by YCharts Global Timber & Forestry Index (WOOD) WOOD data by YCharts Watch this Episode
BALANCE YOUR ASSET MIX ACCORDING TO YOUR AGE
Follow the advice of PIMCO’s Bill Gross: “Own more stocks if you are young, but more bonds if you are in your 60’s or older.” Watch this Episode