Orbis Investments on LinkedIn: Blending contrarian value into a passive and growth portfolio did not… (2024)

"Diversification is the investor's best friend! 🌐💼 When it comes to navigating the stock market, putting all your eggs in one basket is a risk we aim to avoid. Here's a quick dive into the art of Diversification:Spread the Wealth: Diversification is about spreading your investments across different assets, sectors, and even geographical regions. 🌍💰 This helps reduce the impact of a poor-performing investment on your overall portfolio.Industry Jugglery: Invest across various industries to avoid being overly exposed to the fortunes or misfortunes of a single sector. 💡 Tech, healthcare, finance – cast a wide net!Size Matters: Mix it up with investments in companies of different sizes. Balance large-cap stability with mid-cap growth potential and small-cap dynamism. 📈📉Blend of Assets: Don't limit yourself to stocks alone. Bonds, real estate, and other asset classes can add a stabilizing touch to your portfolio. 🏡💼Global Vision: Consider international investments. Different markets may not move in sync, providing a buffer against economic downturns in one region. 🌐📊Remember, the key is balance. Diversification won't eliminate risk, but it can certainly help manage it. How do you diversify your portfolio? Share your strategies below! 👇💬 #DiversificationStrategies #InvestingWisdom #StockMarketInsights"

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After another month of positive market inflows following strong investment performance, it's worth a timely reminder that chasing returns simply doesn't work in the long run. We all know it makes sense to buy products at a discount and sell them at a premium. Yet when it comes to investing in capital markets, humans display the exact opposite behaviour. The process of buying high and selling low abounds, despite all the intuition and evidence that it's a recipe for disaster. Left to our own devices, we can't help but follow our instincts to run and hide until it's safe to return. Don't get caught in this cycle. There is a better way 💡 🤝

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50% OFF Sustainable Growth Trends!!! I don't run many discounts because our track record is excellent enough not to, but, I think 2024 is going to be a huge up year for small and mid caps. This is where to get them. We have averaged a 10-bagger per year for 20 years. I think we have 5-10 in the current basket of top growth investments. Join us now with a 50% discount to only $199.50 your first year. Make multiples of that with our proven approach to investing. #investing #stocks #stockstobuy #etfs

2022 was hailed a year of revival for value strategies, but they have been comprehensively outpaced by growth strategies to date in 2023.https://lnkd.in/e4wCBQWj#value #growth

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📊🌐📈 Value vs. Growth: Clash of TitansValue's Brief Surge? Last year, value beat growth. But doubts persist. Bartels warns financial issues could hinder value, favoring growth long-term.Tech Drives Growth As economy stabilizes, tech fuels growth. High valuations riskier, notes Saglimbene. Overlooked sectors could rally if market holds.Timing the Drama 📚🎭 Pitcairn sees growth-value shift with soft landings or inflation-driven value. Timing risky, diverse portfolios key. Krauss predicts sustained value rise due to higher rates, attractive valuations as "any price" growth wanes.

This illustrates the importance of diversification and how chasing performance based on historical data is not optimal.This is extracted from a Russell Investment report that has the following extract notes regarding this table;Whether you’re a new or experienced investor, the temptation to chase short term returns can be hard to resist. This table illustrates how different asset classes have performed relative to a multi-asset portfolio diversified across multiple assets, strategies & managers (with an average exposure of 70% growth assets).It also helps to demonstrate the cyclical nature of the markets, showing that one year’s best performing assets can just as easily end up the next year’s worst.History shows us that no one asset class has continually outperformed over a sustainable period. So, it’s unwise trying to time the market by chasing short term performance. Let’s look at the case of two investors, Sam and Alex. Alex’s strategy is to switch investments at the start of each year into the previous year’s best performing asset class, i.e. `chasing past performance’. Over the 20 year period starting at the beginning of 2003 to the end of 2022, his $10,000 investment would have grown to $20,850 an average annual return of 4.8%.However, Sam remained invested in a multi-asset portfolio over the same period. By contrast, the balance at the end of December last year would have been $40,462; an annual average return of 7.8%. That’s a difference of more than $19,612 over the 20-year period. Choosing a diversified multi-asset portfolio can help smooth volatility and provide more stable returns over the long term.

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🌟 Why Diversification Matters in Stock Portfolios 📊💼Diversification is a fundamental concept in the world of investing, and for good reason. It's not just a buzzword; it's a powerful strategy that can help you manage risk and enhance the potential for long-term gains in your stock portfolio. Here's why diversification matters:🎯 Risk Reduction: Diversifying your portfolio means spreading your investments across different asset classes, industries, and geographic regions. This reduces the impact of poor performance in any single investment. When one part of your portfolio is down, another may be up, helping to balance your overall risk.🌐 Capture Global Opportunities: Diversification allows you to access opportunities in different markets and regions. While some markets may be struggling, others could be thriving. This global perspective can provide stability and growth potential.💪 Smoothed Volatility: A diversified portfolio tends to experience less dramatic price swings than a concentrated one. This can help you stay the course during turbulent times, reducing emotional decision-making.💡 Enhanced Long-Term Returns: While diversification may limit the potential for massive short-term gains, it also limits the potential for catastrophic losses. Over the long term, a diversified portfolio is more likely to generate consistent, positive returns.🚀 Adapt to Market Cycles: Different asset classes perform well in different economic environments. Diversification allows your portfolio to adapt to changing market conditions. For example, bonds may perform better during economic downturns, while stocks may excel during periods of growth.Remember, there's no one-size-fits-all approach to diversification, and it should be tailored to your unique financial situation. Your financial advisor can help you create a diversified portfolio that works for you. 💬📈 ✅ Repost it to help others✅ Follow me (suraj yadav) for more such contentSarthak Nautiyalhashtag#Investing hashtag#diversification hashtag#portfoliomanagement hashtag#finance

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𝐈𝐧𝐯𝐞𝐬𝐭 𝐚𝐧𝐝 𝐟𝐨𝐫𝐠𝐞𝐭: Does it really make sense in the current times?We all heard the #stories of those who invested in equity and simply forgot about it, only to see massive returns on their investments years later. It sounds like a #dream come true, right? But in today's ever-evolving market, is this still a viable strategy?Let's take a step back and think about the choices someone had back in the early 2000s. Online stock trading was just picking up, and minimal information was accessible about companies. A few well-known companies dominated the market due to limited business competition. In short, back then, there was no choice to manage/track investment actively hence investors tend to invest and forget.Fast forward to today, and we can see how much the investment #landscape has changed. The rise of technology has #democratized access to information, giving investors an abundance of data at their fingertips. The market has become highly competitive, with new players constantly emerging.𝐖𝐡𝐚𝐭 𝐢𝐬 𝐭𝐡𝐞 𝐬𝐢𝐭𝐮𝐚𝐭𝐢𝐨𝐧 𝐧𝐨𝐰?✶Easy internet access with faster data speed✶Online stock trading is possible with just one click of a button.✶Companies quarterly review analysis is available in 5 seconds as soon as it is announced.✶Social Media dominance ✶All happening in the companies/information/ corporate announcements are easily and instantly available to make decisions.The world of investments has become more #complex, and it requires an active and informed approach. It's crucial to keep up with market trends, monitor industry developments, and be ready to adjust strategies accordingly.𝘿𝙤𝙣’𝙩 𝙞𝙣𝙫𝙚𝙨𝙩 𝙖𝙣𝙙 𝙛𝙤𝙧𝙜𝙚𝙩, 𝙧𝙖𝙩𝙝𝙚𝙧 𝙄𝙣𝙫𝙚𝙨𝙩 𝙖𝙣𝙙 𝙈𝙖𝙣𝙖𝙜𝙚!!#investing #equity #longterminvesting

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📊🌐📈 Value vs. Growth: Clash of TitansValue's Brief Surge? Last year, value beat growth. But doubts persist. Bartels warns financial issues could hinder value, favoring growth long-term.Tech Drives Growth As economy stabilizes, tech fuels growth. High valuations riskier, notes Saglimbene. Overlooked sectors could rally if market holds.Timing the Drama 📚🎭 Pitcairn sees growth-value shift with soft landings or inflation-driven value. Timing risky, diverse portfolios key. Krauss predicts sustained value rise due to higher rates, attractive valuations as "any price" growth wanes.

Why invest in a balanced portfolio now?A soft landing for the US economy over the coming months is the most likely scenario, in our view. This outlook for slow, but still positive growth, supports our preference for fixed income. Meanwhile, the absence of a recession should also bolster equity markets over the coming 12 months. Indeed, we're at a rare moment when in our base case we expect cash, bonds, stocks, and alternatives to all deliver reasonable returns. This strengthens the case for investors adding to diversified portfolios. #balancedportfolio #USeconomy #totalreturns

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