I was the manager of Glide United Methodist Memorial Foundation portfolio for eleven years 1971-1982. The portfolio was worth several million dollars and for ten years I generated a total return greater than 20% per year. The last year I managed the portfolio the return was only 10%. During that time and since, innumerable people have asked me for investment help and advice and I have steadfastly refused...for a simple reason. There was no such thing as advice to buy without advice sometime later on to sell. I couldn't even know who I had told to buy and certainly would never pick up the phone and try to call everyone to tell them I was selling. I would have to either manage a portfolio or stay far away from the whole matter. I did the latter.
The Wall Street Journal on Saturday Dec. 2nd solved the whole 30 year problem for me. There is a strategy for ordinary people to invest in equity, hold on to the portfolio, add to it over time and get all the benefits of the best equity investments. The strategy is to buy index ETFs , exchange traded index funds, in a diverse set of markets. Keep buying the same portfolio package each time you can afford to buy more. You will see your portfolio outperform nearly everyone, over a decade...over several decades.
My balanced portfolio that doesn't need attention would be 45% U.S. Stock 45% international stock and 10% bonds. The 45% U.S. equity would be Dow Jones Total Index (IYY), the 45% international would be three stocks 15% Japan (EWJ), 15% non-Japan Asia (EPP), and 15% Europe (IEV). Lastly for bonds I would get a portfolio of U.S. treasuries that are inflation adjusted (TIPS). (The letters in parens are the stock market symbols)
You can buy this portfolio online with any account that will give you an annual tax statement. The costs are minimal. I will buy this portfolio on Jan. 2 and report on its progress.
Ask me for investment advice again in 10 years and my answer should not have changed. (To calculate your portfolia additions see a more recent blog. Recalculate proportions if any one index is five points different.)