Create a simple, cheap, and diversified investment portfolio

🎓 Create a Simple, Cheap, and Diversified Investment Portfolio
Instructor: Lars Kroijer

Course Headline: How to invest your money once you embrace that you can't beat the market – because, let's face it, very few investors can.

• The Importance of Accepting Market Limitations: We'll delve into why it's crucial to understand that most investors can't consistently beat the market and what that means for your investment approach.

• Understanding Optimal Portfolio Theory: Learn about the theory behind the simple, cheap, and powerful investment philosophy that doesn't rely on you being an investment superstar.

• Simplicity is Key: Discover how you can achieve a diversified global equity exposure by investing in just one world equity index tracker.

• Tailoring Your Risk Profile: Find out how to combine this equity exposure with a low-risk asset in the right proportions to match your personal risk tolerance.

• Implementing Your Portfolio: We'll guide you through the practical steps of setting up your portfolio using widely available index tracking investment products like ETFs, thus avoiding the higher fees typical of the mutual fund industry.

Course Structure:

1. Introduce the Concept: We'll start by setting the stage for why a simple, cheap, and diversified investment strategy is not just beneficial, but essential for most investors.

2. Convince Investors of the Low Likelihood of Market Beating: We'll present the data and explain why it's highly improbable that you can consistently outperform the market.

3. Explain Why You Only Need One World Equity Index Tracker for Your Equity Portfolio: We'll show you how one global tracker provides the diversification you need.

4. Outline a Portfolio Combining Equity Exposure with a Low-Risk Asset: Learn how to adjust your investment mix according to your personal risk profile for optimal long-term returns.

5. Implementing the Cheap and Optimal Portfolio: We'll walk you through specific examples of products you can use, making the implementation process clear and straightforward.