One little push-pull I'm running into is that I'm selecting quality securities that appreciate; the "Active Satellite", but I'm sizing positions smaller for risk mgmt. Desire to increase size is there, but it has to be balanced into the overall picture & the portfolio as a WHOLE.

Generally, a normal #ActII #Center investing portfolio is tailored to the individual, but there are some broad principles that I've applied across portfolios. "Passive Plus" generally has a Passive Core & Active Satellite construction with a broad diversified asset allocation.
The Passive Core is usually around 75-80% of the portfolio consisting of low-cost tax efficient index ETF's covering most equity asset classes (Large Core, Large Value, Mid Core, Mid Value, Small Core, Small Value, EM, Int'l LG/SM) w/exposure to ALL at ALL TIMES.
One caveat to the "Passive Core" is that I use (held passively) a very small number of actively managed mutual funds within that 80% of the portfolio. These are GROWTH funds that worth the small extra expense & I have one manager for US Large and Small US Growth & Int'l Large
This part of the portfolio is truly "Core". It doesn't move. It doesn't get sold aside from rebalancing. It didn't get sold in the depths of March. There is a possibility these positions will be in place for decades. The asset quilt changes every year, so we are exposed to ALL
The most important part about this "Passive Core" of the portfolio is the low-cost exposure to the entire world in thousands of securities, which is an important piece of risk mgmt. It's ok when one asset class is underperforming because the chances are several others overperform
The "Active Satellite" is generally about 20% of the portfolio. This is where there is flexibility to be very specific with the combination of single security selection, dividend stocks, and sector/thematic/concentrated funds based on specific needs. This is where alpha lives.
I would also include REITs in the "single security selection" and "Active Satellite". There is a very small number of either thematic ETFs (gaming, E-sports), sector (healthcare, industrials), opportunistic "Growth at Value" price dislocations on only the HIGHEST QUALITY Co's.
Due to the small number of securities involved in terms of single name holdings (yes I understand risk & that the true "PASSIVE ONLY" could be having strokes reading this) generally these are placed across portfolios and held for a long time. My "Active Satellite" is pretty slow!
So, what I have found is that the "Passive Plus" strategy accomplishes many things: Passive & Active complement each other, risk mgmt through diversification FIRST does NOT kill performance, and flexibility in the "Active Satellite" allows for performance enhancement over "Core"
I understand the Quants, traders, the "Value is dead" crowd, and many others would take issue with all or part of my investment philosophy, but there is nothing that can alter the basics I've outlined because I have seen them effectively implemented across millions of dollars.
I've seen the mechanics of real money in real time through the worst crash in our lifetimes aside from the GFC. I've seen how assets can be positioned in very specific ways for very specific needs or a combination of all; preservation, growth, income, etc. "Passive Plus" works.

More from For later read

Humans inherently like the act of solidarity. We are social beings. We like to huddle up and be together.
They used this against us.
They convinced us that it was an act of solidarity to flatten the curve, to wear a mask for others, to take the vaccines for others,


and to reach #covidzero for others. They convinced us that this was for the greater good of society.
In reality, this couldn't be further away from the truth. They have divided us and broken the core structure of our society. They have dehumanized us with their masks.

They set us against each other into clans on opposite sides of a spectrum. They have turned us into aggressive beings fighting for our survival. Some of us fear harm from the virus, others fear harm from the vaccine, and yet others fear harm from the attack on our civilization.

We are all on a flight or fight mode. We are all operating under the influence of fear. We must collect ourselves and reflect on what has happened over the last year.
How is this for the greater good of society?

They used a tactical warfare strategy against us.
'Divide and conquer'.
We fell for it.
Now we must become aware of it and fight back.
We must reunite. We must find true solidarity to save our world. To free ourselves. To regain our autonomy.
1. The death of Silicon Valley, a thread

How did Silicon Valley die? It was killed by the internet. I will explain.

Yesterday, my friend IRL asked me "Where are good old days when techies were


2. In the "good old days" Silicon Valley was about understanding technology. Silicon, to be precise. These were people who had to understand quantum mechanics, who had to build the near-miraculous devices that we now take for granted, and they had to work

3. Now, I love libertarians, and I share much of their political philosophy. But you have to be socially naive to believe that it has a chance in a real society. In those days, Silicon Valley was not a real society. It was populated by people who understood quantum mechanics

4. Then came the microcomputer revolution. It was created by people who understood how to build computers. One borderline case was Steve Jobs. People claimed that Jobs was surrounded by a "reality distortion field" - that's how good he was at understanding people, not things

5. Still, the heroes of Silicon Valley were the engineers. The people who knew how to build things. Steve Jobs, for all his understanding of people, also had quite a good understanding of technology. He had a libertarian vibe, and so did Silicon Valley

You May Also Like