Khota Paisa

The Simplest Portfolio Ever

Posted in General, Investment by khotapaisa on June 11, 2009

Some time back, I was watching an interview of an well known expert(perhaps the best in india) of equity investment. During the discussion, he sort of gave the broad details of his portfolio. In addition to being ultra simplistic, it is an interesting portfolio. His portfolio constitutes of just Equity Investment & PPF. That’s right, no other fancy stuff. In fact more than 90% of his portfolio is invested through equity. This may look like a funny portfolio but a second glance shows that it is indeed a very smart portfolio. The matter of fact is that there are only two types of investments, Equity & Debt. Everything else, we know of, is just a combination of these two. That’s what this portfolio is about. It consists of the most risk free investment available (i.e PPF) & pure equity.
It sure does look like an interesting portfolio. But does it suit all?  I guess not.

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2 Responses

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  1. Mukul said, on December 17, 2009 at 4:30 pm

    Very good post. Simple and easy. It is investment simplistically simplified(if i may say so).

  2. Jaspinder said, on December 29, 2009 at 9:16 pm

    Very good post. This reminds me of Warren Buffet, the best investor of all times. He once said “There seems to be some perverse human characteristic that likes to make easy things difficult.” Very True Indeed!

    On a different note, in my view the simplest and best investment which have consistently given better returns over long term than equity investments is LAND. Just go and buy a piece of agriculture land and then forget it. It will give you better return over a 10-20 year period than any equity investment. Perfect choice for a retirement portfolio.


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