This. Pension fund buy ins seem to make most sense when you are in your 50s.
I guess I will spread between some mid cap value fund, some fixed income (EU corp bonds) and maybe some commodity ETF.
I canāt remember who told me that their pension fund was gave them 5-6% over the last few years, but I was jealous I was getting just 1-2%.
I guess if you go for a company with few retirees and plenty of young workers, then the returns can go to you instead of paying the pensions of already retired folks.
Probably, but for me, I think it is also good to spread the contributions out a bit and get tax relief at the highest marginal rates. Now that I find that assets are all at very high valuations, I donāt mind diversifying a bit and getting fixed return even if it is just 1-2%.
I can easily see a scenario where the economy goes bad and am glad I got 2% instead of -40%.
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Warren Buffet has sold half his AAPL holdings.
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And apparently bought US treasuries. Disappointing tech earnings paired with very high P/E ratios are not a great indicator.
Big in Japan!
Very interesting publication about long-term yields on US equities.
This report describes compound return outcomes for the 29,078 publicly-listed common stocks contained in the CRSP database from December 1925 to December 2023. The majority (51.6%) of these stocks had negative cumulative returns. However, the investment performance of some stocks was remarkable. Seventeen stocks delivered cumulative returns greater than five million percent (or $50,000 per dollar initially invested), with the highest cumulative return of 265 million percent (or $2.65 million per dollar initially invested) accruing to long-term investors in Altria Group. Annualized compound returns to these top performers relatively were modest, averaging 13.47% across the top seventeen stocks, thereby affirming the importance of ātime in the market.ā The highest annualized compound return for any stock with at least 20 years of return data was 33.38%, earned by Nvidia shareholders.
Who had tobacco on the checklist? Not me. Itās not sexy, itās not tech.
Of course, Philip Morris was a diverse conglomerate. At some point, they owned Toblerone (and the company behind it) and then resold for a nice gain.
Tobacco was my biggest holding and currently my top holding is a tobacco company (BTI). Iād like to hold more Altria, but they have value-destroying management - a testament to how good the underlying business is that they can destroy billions year over year in value and still be profitable and cash-flowing.
Iām hoping for a recession so I can buy more tobacco companies at good valuations, but I do wonder about their longevity, as anecdotally, it seems that generations are becoming more healthy and smoke less and population may soon peak anyway.
I actually prefer boring companies: tobacco, defence, mining, utilities, energy. The difficulty is that energy and mining are very cyclical so you have to be careful when you buy and sell. tobacco and utilities are subject to risk-on/risk-off flows and are very low growth so if you buy at the wrong price, you will pay dearly for it.
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I got an ad from UBS selling me Barrier Reverse Convertibles - for Tesla. At 18%.
Canāt remember the due date. But it seems to me that someone is trying to find a bag holderā¦
I am not a UBS customer. Nor do I own structured products of any kind.
Yes, but I split BTI between BTI and MO. My tobacco, utilities and insurance stocks have held up pretty well.
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