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    Asset Allocation and Effective Portfolio Management: Part Two
    Asset Allocation and Effective Portfolio Management: Part Two
    Asset Allocation and Effective Portfolio Management: Part Two
    Ebook55 pages27 minutes

    Asset Allocation and Effective Portfolio Management: Part Two

    By STRIDE

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    About this ebook

    In our latest eBook, Part Two of Asset Allocation and Effective Portfolio Management, we demonstrate how you can generate market-beating returns your way.
    If you've already read Part One, you will understand your circumstances and attitude to risk, have calculated your cash reserves and determined your investor profile.
    Now it's time to plan a personalised strategy for effective portfolio management tailored to your personality, lifestyle and desired returns.

    Collectively, we are value investors. But we are also individuals who each has quite a different approach when it comes to how we choose to divide up our portfolios. Some of us are cautious investors who only want to buy into low risk, large cap businesses. Others are bold, equally happy to own shares in micro as large caps, exposed to greater risk for greater potential reward. There are yet more who fall somewhere between these two extremes idenfifying most with a mindful or confident profile.

    Understanding who you are as an investor and determining your asset allocation model is just the beginning and already covered in Part One of this eBook. In Part Two, we move forward into the practical world of value investing, helping you to answer questions such as:

    How exactly should you divide your equities section?
    How many stocks should you own?
    How much should you invest in each holding?
    What should you do once those investment 'slices' start to grow?
    When is the best time to sell a stock?
    When should you react to news of an impending recession?

    Based on our Long-term Profit (LTP) equation we have developed a portfolio management philosophy of principle over panic, facts over fear and allocation over activity. Using this to guide stock selection, slice size model and rebalancing strategy enables us to achieve consistent, market-beating returns; regardless of our personal specifics and investor profile.

    Whatever your strategy, applying our philosophy to your portfolio management models steers you away from unnecessary impulsive activity that can have a serious impact on profits. We show you how to navigate a media that profits from doom, directing you to actual economic indicators that inform your decisions, inspiring intelligent actions that lower expenses and support great returns.

    As well as lots of information, this eBook contains practical tools and advice to help you put your personalised portfolio management strategy to work:
    Calculate the ideal slice size model for your equities
    Learn how to adapt your portfolio around your changing circumstances
    Easy steps to ceating a new portfolio or rebalance an existing one
    Follow our live case study to see how a STRIDE portfolio performs in real time in the real world.

    LanguageEnglish
    PublisherSTRIDE
    Release dateDec 19, 2014
    ISBN9781311509291
    Asset Allocation and Effective Portfolio Management: Part Two
    Author

    STRIDE

    STRIDE is a research tool that helps independent investors select stock based on the principles and dimensions of 3D value investing.STRIDE is the creation of brothers Scott and Dale Nursten.These entrepreneurs have worked with many international businesses and investments during their careers, with specific ties to technology, change management, food production, marketing and finance. They have succeeded consistently in generating value in every business they’ve been involved with.Dale and Scott began working on STRIDE in 2008 purely as a means of managing their personal investments. What started as a spreadsheet has since grown into a web-based tool that analyses data from over 40,000 companies worldwide.

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      Book preview

      Asset Allocation and Effective Portfolio Management - STRIDE

      Asset Allocation & Effective Portfolio Management

      Part Two

      Designed & Compiled by STRIDE

      Copyright © 2014 STRIDE. All Rights Reserved.

      Content

      Introduction to Part Two Effective Portfolio Management

      STRIDE Long-term Profit Principle Equation

      Below the Line: The Fear Factor

      · The Difference Between Fearful Trading and Smart Allocation

      · The Profits of Doom

      · Facts, Not Fear

      · Economic Indicators: Leading, Lagging and Coincident

      · Over Act and You’ll Run to Stand Still

      Above the Line: Principle Over Panic

      · Selection

      · Personal Portfolio Management

      · How Many Stocks Should You Hold?

      · Different Slice Models: Ten Year Portfolio Activity and Returns

      · Why Patience Pays Off

      STRIDE’s Profit Principle in Action

      · Downloadable Equities Slice Calculator

      · Stock Selection vs Asset Allocation

      · Fees, Spread Factors and Income

      · Diversification

      · Using Currency to Your Advantage

      · Live Case Study: Little Acorns Portfolio

      · Investing Check List

      Introducing STRIDE’s Philosophy for Effective Portfolio Management

      This second part of our eBook focuses on the practicalities and options of effective portfolio management.

      If you haven’t already, we strongly suggest that you read Part One first before going ahead with Part Two. We have defined terms and profiles in Part One that are critical to your understanding of this next stage. The book also contains useful tools and diagrams to help you take the preliminary steps necessary before you allocate your assets and embark on assembling, redesigning or rebalancing your portfolio.

      Download Part One here

      This book presumes you already know your attitude to risk, which investor profile you fall into and how much cash you should set aside as reserve, based on your personal circumstances. These three determinants will now dictate your investment targets by market cap, the number of ‘slices’ into which your equities should be carved and, in turn, your anticipated trading commitment.

      Central to the STRIDE portfolio management philosophy is our Long-term Profit Principle Equation (LTP). This simplifies our strategy of considered selection, allocation and patience, while purposefully avoiding unnecessary activity and fear.

      The first and second sections of this book break down the LTP, drilling into each of its components and explaining why

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