Andrew Beer, Founder of DBi, discusses his approach to managing his personal portfolio, including his views on stocks and bonds, incorporating managed futures, homeownership, and charitable giving. He also reflects on the importance of long-term thinking, being actively involved in philanthropic efforts, and the power of compounding.
Andrew Beer emphasizes the importance of including both economic and non-economic assets, such as homeownership, in a well-rounded portfolio.
Andrew Beer advises focusing on average returns and enduring short-term market volatility for long-term growth.
Andrew Beer recommends diversification through assets with low correlations, such as managed futures, and emphasizes the need for clear communication and education when benchmarking and messaging strategies to clients.
Deep dives
Investing for the Long Term
The podcast episode features a discussion with Andrew Beer, co-founder of Dynamic Beta Investments and a co-portfolio manager of a popular managed futures ETF. Andrew shares insights into his personal portfolio and investment approach, emphasizing the importance of long-term goals. He believes in having a portfolio that includes both economic and non-economic assets, such as homeownership. Additionally, Andrew highlights the significance of giving back and actively participating in charitable endeavors. He also discusses the value of managed futures in diversifying a portfolio and deriving uncorrelated returns from assets.
The Value of Compounding
The interview touches on the concept of compounding and the long-term effects it has on wealth accumulation. Andrew advises having a plan and allowing professionals to manage your investments to benefit from the power of compounding. He suggests focusing on average returns rather than constantly seeking outperformance. Additionally, Andrew shares his belief in the value of equities for wealth accumulation and emphasizes the need to endure short-term market volatility for long-term growth.
Practical Considerations in Portfolio Construction
The discussion explores practical considerations when constructing a portfolio. Andrew recommends focusing on diversification and adding assets that have low correlations to traditional stocks and bonds. He highlights the benefits of managed futures in providing tactical flexibility and acting as a diversifying element in a portfolio. Andrew also discusses the challenges of benchmarking and messaging strategies like managed futures to clients, emphasizing the need for clear communication and education to overcome misconceptions.
Importance of Long-Term Thinking and Diversification
The podcast emphasizes the importance of thinking long term and being patient when it comes to building a portfolio. It encourages investors to save and accumulate wealth over time, stressing the power of compounding. The speaker also highlights the value of diversification, considering non-economic factors such as flexibility and peace of mind in investment decisions. Additionally, the podcast acknowledges the benefits of having philanthropic goals and giving back to society as a long-term investment.
The Value of Flexibility and Non-Economic Considerations
The podcast discusses the concept of making investments that may not be financially optimal, but provide personal value and peace of mind. The example of homeownership is given, where the decision to rent rather than buy is seen as a way to prioritize flexibility over economic benefits. The podcast also explores the importance of diversification as a risk mitigation strategy, with the speaker noting the potential value of investments in gold and commodities alongside other assets. Lastly, the speaker emphasizes the need for a long-term perspective in investment decisions and encourages individuals to think about the broader goals and priorities in their lives.
In this episode, we speak with DBi founder Andrew Beer about his approach to managing his personal portfolio. We discuss how Andrew looks at his portfolio in the context of his life goals, his views on stocks and bonds, how he incorporates managed futures into his portfolio, his views on homeownership and charitable giving and a lot more.
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