Thanks for highlighting this link. His style of communicating his approach to investing to Google employees is as impressive as the underlying message. A very similar approach is to be found at the following link of 5 short videos from Lars Kroijer -

http://www.kroijer.com/

As someone who has been investing in ITs for over 27 years, I am steadily reinvesting in a Vanguard ETF in my ISA account while my wife is shifting to a Vanguard Life Strategy Fund.

Although this post is about the relative merits of lifestrategy v multi index, what Collins and Kroijer are trying to get across more broadly is the need for adults to develop the life skills for investing to secure their futures in an increasingly unsettled world.

I would resist the urge to tinker
You have a successful Vanguard fund-just stick with it -it’s a winning strategy-hope you didn’t miss the current upturn in the stockmarket with your new fund adjustments
If so-lesson learned
xxd09

One level down the ladder on "risk level", but I hold both L&G multi-index 5 alongside VLS60 (have a bit over twice as much in VLS60 though).

The reason L&G has lagged is, I think, because while both VLS & L&G MI have a bit of home bias in their equities, L&G MI go further and underweight the USA. And in recent years the US has been the place to be for returns.

For example, Morningstar gives the following equity exposures (just looking at the equities part of those funds):

Vanguard FTSE Global AllCap (ie a global index, so the "natural" market-cap weighted allocation):
USA 60.7%
UK 3.7%

VLS60:
USA 49.3%
UK 22.5%

L&G MI 5:
USA 33.6%
UK 20.2%

From here, who knows really. Plenty think the USA is overvalued and headed for a fall or at best to track sideways for years. OTOH there's plenty have been saying that for years (L&G MI managers amongst them) and missing out on good returns meanwhile.



If you diversify around a bunch of these things you have to accept that only one of them can be the winner over any timescale. If you keep chopping and changing trying to catch "the best one"... you'll probably fail. Or you'll just get lured into the one which is actually taking on a little more risk and at some point that'll come back and bite you. What you have to ask yourself is do you still believe what the managers are trying to do is plausible and whether you still want to buy into that strategy, even if it's underperformed other managers' strategies in recent history (and I wouldn't judge anything on 1-year timescales... I make a point of giving stuff 5 years minimum myself).

Total return chart for last 5 years:


A couple of years ago when everyone was yelling that "value investing is back!" L&G MI did actually outperform VLS60 for a bit, which is why its 3-year numbers show it outperforming over that timescale. But as the 1-year numbers show, we now seem to be back in the same climate that dominated over 5 and even more so over 10 years and US exposure being the key to success. But from here?

While I'm here... "front man" for the L&G MI range used to be Justin Onuekwusi who used to do some very good webinars and videos on what the multi-index funds were trying to do - and drop snappy soundbites like "the concentration conundrum" - before L&G went and locked them all away behind "register as a pro" walls. He seemed to drop out of view and I assumed he'd been promoted upstairs... but I was gutted to see he's just joined SJP!!! https://portfolio-advise...ole-at-st-jamess-place/

There's only two prices that matter. The one you buy at and the one you sell at. On screen paper profits are just pictures at a point in time. Might make you feel smug and give you a warm glow inside. Congratulating yourself how well you are doing. When the tide turns as it always eventually does. What you see on screen can bring you down to earth with a real jolt.

Too many investors let emotions dictate their investment decisions rather than cold hard logic. You've no friends when trading the markets. There's always somebody else wants to take your shirt off your back.