Sunday, April 02, 2006
Holiday in Spain
It’s been some time since my last posting which unfortunately shows how hectic my schedule has been of late. In contrast to my ambitious start (3 postings in 5 days), I’ve realized that updating this blog with valued content will at best be a semi-monthly endeavor.
After waiting almost two months for a work visa, I’ve recently moved to Madrid to begin a new assignment that will take me through the end of September. So far, Madrid has been great (think: sangria, tapas, and mid-day siestas). I live on the northern side of the city (Nuevos Ministerios) which lacks the charm of Madrid’s more historic parte vieja, but I’m conveniently just a 5 minute walk from the office.
Pasamos a hablar de inversiones. Before my next analysis, I wanted to provide some context on my performance and portfolio theory. The latter is very much a work in process and I expect to do a significant amount of spring cleaning as I take on a more ‘focused’ approach.
The first quarter has come to a close and my actively managed portfolio is up 14.3% YTD.
Holdings as of 3/31/06, listed in no particular order:
EXPE | TPX |
KND | FDP |
INTC | TCLP |
MCD | MGI |
SFCC |
I actively manage a little more than 2/3 of my investment portfolio while the balance is invested in a mix of cash and domestic & international equity index funds offered through my firm’s 401k plan. I haven’t invested enough time to determine the optimal allocation between active & passive as well as current & tax-deferred investments. Instinctually, I feel that diversifying my tax liability between traditional brokerage and tax-deferred investment accounts is the correct answer. Correspondingly, I actively manage the brokerage account and passively manage my 401k contributions.
I hold little cash and no debt or derivative securities. As to the benefits of an all equity investment plan, I recommend you pick up a copy of Jeremy Siegel’s Stocks for the Long Run. Jeremy is a Wharton finance professor who has completed extensive security research showing that stocks have historically outperformed all other asset classes given a long-term investment horizon (~20 years).
Hasta el próximo, RMA.
