Between 2001 and 2014, Nick Sleep’s Nomad Investment Partnership returned 921%, against 117% for the MSCI World Index. That is roughly ten times investor’s money, or about 20% a year. He rarely held more than ten positions, and at times his top three made up more than half the portfolio. In his letters to partners … Read more
If you’re 30, the 100-minus-age rule tells you to hold 70% of your portfolio in equity. If you’re 55, it tells you to hold 45%. Simple, memorable, widely repeated. It’s also the wrong tool for the job. The usual criticism is that the rule is too conservative, that with modern life expectancy you should be … Read more
“Six months of expenses” is the number most of us have heard. It is repeated so often that it has stopped being questioned. Let us be clear: it is not bad advice. It is simply a rule of thumb, and rules of thumb are, by definition, built for the average case, not your case. The … Read more