Lars Kroijer Investing Demystified (The Financial Series) | #43 | podcast | superb diamond range

#43

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Welcome Lars to the superb diamond range show, it’s an honour to have you on the show. So Lars could you start by telling our listeners a little about you and your background?

Before we talk about your preferred investing strategy, what are your thoughts on buying individual stocks and in people believing they have an edge over the market?

 

Your strategy is not particularly complex which drew me to it. In fact it is very simple and low cost it generally involves 2 possibly 3 funds (if you wanted to add corporate bonds as well as government bonds). Can investing really be this simple and easy?

 

Now generally speaking there are two parts to your strategy a global equity stocks part and a local/national currency you live in dominated bond part if it makes sense where you live. Please can you tell our listeners about the Equity side? Presumably this will be the engine and riskier side of the investment. Advantages: Shares offer higher returns, diversity away from home.

 

I notice allot of default occupational pensions have a heavy leaning to the UK for example as well as the Vanguards Lifestrategy range. Currency risk is another thing to look out for which leads to allot of individual investors being heavy in their home market. What's your opinion on home bias? 

 

Now would you mind telling us about the volatility reducer or as I refer to them the breaks of the fast car? This would be for the fixed income side of the portfolio. Bonds?

 

Thoughts on adding corporate bonds to this mix? I have heard a 60% Gov bonds to 40% Corporate bonds can be a good blend. Also heard corporate bonds can behave like stocks in a crash so would you not be better off increasing global equities to take a bit more risk and just hold less Gov bonds.

 

You mention in your book 'investing demystified' and 'YouTube' videos about the lowest risk asset available, what would you describe that as and if you believe such a thing exists in todays market?

 

Do you have a personal preference on using say index funds Vs say ETF's?

 

How important do you feel liquidity is with investing?

 

Here in the UK we have tax sheltered vehicles like pensions and stocks and shares ISA's. Do you have any suggestions where best to hold certain assets. You often hear about asset allocation this question more fefers to asset location. So for example you may choose to hold Global equities mainly in your ISA and then Mostly fixed income Gov bonds in your pension. Any thoughts on this? Obviously you mention it's very important to think about taxes as it can really derail your plans.

 

Each individual has different risk tolerances, ages, situations and incomes. Would you recommend seeking help from a financial adviser to determine their risk levels to figure out their asset allocation? Obviously there is many rules of thumb out there like your age minus 100 equals your bond portion or the 120 and 110 rule.

 

I note from a previous podcast you were on called 'Informed Choice Radio' you said you should really only buy what fund you need at the time and to take time to assess your allocation if you feel it needs changing or updating according to where you are in your life financially. Making emotional or behavioural mistakes within investing is quite common particularly for beginners. Obviously you can make this low cost approach to investing unnecessarily expensive and defeat it's purpose and simplicity. What is your take on charges for dealing fees within platforms and mistakes individual investors make by over trading with their investments say possibly even changing funds allot? Or even trying to time the market? 

 

You're currently living in my old home town London where house prices are really crazy, scary even and even renting can be extremely expensive depending on the area and type of place. I personally like the freedom renting gives but will admit sometimes purchasing property can make sense when you make the right calculations.

What is your opinion on property investing?

 

Curious to hear your opinion on investing in Gold, be it owning it physically as well as through an ETF?

 

Any thoughts on Bitcoin or Crypto currency investing? I'm personally not that interested in it but I realise it's quite popular these days.

This is the bogleheads forum page I first discovered Lars Kroijer in:

https://www.bogleheads.org/forum/viewtopic.php?t=237134

Be sure to check out Lars's Website:

https://www.kroijer.com

Books:

Investing Demystified:

https://amzn.to/4bfDEDG

https://amzn.to/48UEjIX 

Money Mavericks: Confessions of a hedge fund manager

https://amzn.to/3uks898 

&

Awesome Youtube video series:

https://www.youtube.com/watch?v=_chiIIxMGl0&list=PLXy71rkGuCjXLg9N8zowwUpXCYfBcMJFK

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