Taking Warren Buffett & Your Portfolio to the Next Level

Jul 26, 2018

Taking Warren Buffett & Your Portfolio to the Next Level

In this article (click here), Warren Buffett, one of the greatest investors of all time, shares strong and insightful recommendations regarding your investment portfolio.

In sum:

  • Warren strongly promotes keeping your costs low
  • He believes that you reduce risk (and increase return) by simply owning the whole market at a low cost (as opposed to paying substantially more for a subsection of the market that typically underperforms over time)

While we at True Wealth Advisory Group agree wholeheartedly with the Great Warren, we would improve upon his recommendations in two key ways:

  • Go Global: While Buffet and another great, John Bogle, tout the merits of the S&P 500; it is important to also include small and mid-cap U.S. equities as well as non-U.S. equities.  After all, the S&P 500 is about half the world stock market.  Why leave out the other half?  While U.S. equities have certainly pounded their non-U.S. counterparts over the last decade, we would submit that trend will likely reverse at some point (perhaps it has already as – the U.S. underperformed in 2017); also, small caps are the big winner thus far in 2018.  So, make sure your non-U.S.-large-cap allocation (ie. international and small/mid caps) is substantial and thoughtful.
  • Pay Less Taxes: While we are pleased at the continued trend and especially the recent surge in low-cost whole market investing, most investors are still leaving substantial money on the table.  By using systematic, perpetual tax loss harvesting tools, one can greatly reduce their taxes (hence greatly increasing their potential portfolio gains).  Remember:  it’s not what you make, it’s what you keep!  We predict that this powerful and time-tested yet surprisingly underutilized approach will enjoy tremendous participation and popularity in the years to come (if the IRS is going to give you a tax arbitrage on a silver platter, you should consider taking them up on it!); maybe Warren will add this to his talking points soon.  More importantly, if you are one of the many who do not take full advantage of this now, I strongly suggest you contact us (click here) to learn more!

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True Wealth Advisory Group is registered with Hightower Securities, LLC, member FINRA and SIPC, and with Hightower Advisors, LLC, a registered investment advisor with the SEC. Securities are offered through Hightower Securities, LLC; advisory services are offered through Hightower Advisors, LLC.

This is not an offer to buy or sell securities. No investment process is free of risk, and there is no guarantee that the investment process or the investment opportunities referenced herein will be profitable. Past performance is not indicative of current or future performance and is not a guarantee. The investment opportunities referenced herein may not be suitable for all investors.

All data and information reference herein are from sources believed to be reliable. Any opinions, news, research, analyses, prices, or other information contained in this research is provided as general market commentary, it does not constitute investment advice. The team and Hightower shall not in any way be liable for claims, and make no expressed or implied representations or warranties as to the accuracy or completeness of the data and other information, or for statements or errors contained in or omissions from the obtained data and information referenced herein. The data and information are provided as of the date referenced. Such data and information are subject to change without notice.

This document was created for informational purposes only; the opinions expressed are solely those of the team and do not represent those of Hightower Advisors, LLC, or any of its affiliates.