The main objective of this course is to teach the student how to create, manage, and withdraw from a stock portfolio that will beat the one their stock adviser has given them, and also likely outperform the SP500… without taking any undue risk, and saving a 1-2% adviser fee.
This will be done by:
–Focusing on mutual funds and ETF’s, not individual stocks, in order to maintain diversification and minimize risk. Many of the funds that the instructor invests in will be covered thoroughly.
–Using a core holding of equities approximately equal to the SP500 in risk, and then to tailor the remaining holdings towards some combo of defensive and/or aggressive funds; this is known as the “barbell” approach.
–Some of the conservative fund types we will cover include: defensive funds such as the three defensive sectors of the SP500, minimum volatility funds, blended funds (part stocks, part equities), high dividend funds, equal weighted funds, and sector rotation funds.
–For the more aggressive holdings we will analyze leveraged mutual funds, tech mutuals, individual tech stocks, and discussion on buying on the dips.
With all of these options the student will learn to master the Portfolio Visualizer to analyze the return (CAGR, compound annual growth rate), the risk (standard deviation), the max drawdown (biggest paper loss from a high to a low), and the underwater period (drawdown time plus recovery time) .
After having learned of many attractive mutual / ETF candidates ranging in risk/reward and how to analyze them individually, a good part of the course will involve each student creating quite a few conservative, moderate, and higher risk portfolios using the barbell approach and funds of their choosing and then analyzing each portfolio’s performance in both a bear market and a bull market using the Portfolio Visualizer. We will then discuss many of the best portfolios the group has come up with.