CIO CORNER
·
SUBSCRIBERS

Tortoise versus hare – which portfolio gets you to the finish line?

A foundation portfolio is slow and steady, much like a tortoise. An opportunistic approach aims to outperform, like a hare.

    • A foundation portfolio based on asset allocation means you are less likely to panic and sell in periods of sharp sell-offs.
    • A foundation portfolio based on asset allocation means you are less likely to panic and sell in periods of sharp sell-offs. PHOTO: PIXABAY

    DeeperDive is a beta AI feature. Refer to full articles for the facts.

    Published Tue, Jul 11, 2023 · 03:32 PM

    AT a very high level, there are two styles of investing. The first is to focus on asset allocation, or what we call a foundation portfolio. The second is to try to identify short-term market opportunities or anomalies.

    The first is slow and steady. The second, highly dynamic. But is one better than the other?

    Our contention is while the foundation portfolio is slow and steady, much like a tortoise, it is more likely to get an investor to the destination for two reasons.

    Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.

    Share with us your feedback on BT's products and services