Total return investing: No decimals allowed!
August 24, 2008 – 10:24 pmI don't invest, trade, gamble with a goal of 6-14% annualized returns. You should know this when reading this blog...I'm aggressive beyond the normal parameters of "money management". You see... My goal is to MULTIPLY total assets. I don't separate into "portfolios"....to me, that rings hollow. There is only one portfolio and that is the entire Swan portfolio as a whole. Each year, I'm attempting to multiply my net worth. Multiply. As you can imagine, this type of approach requires great risks...and leads to large swings in both directions. For example, in 2008 I have essentially been cut off at the knees with a rusty nail file. But, the year is not over yet and I still hold out reasonable hope for a "minor" 20% net-worth haircut. :) This is what happens when a vast majority of one's assets are residential real-estate, the dollar (via cash), and the stock of a financial company. On the ...