Recently I mentioned Ray Dalio’s “All weather investing strategy”. In case you haven’t heard of him or his strategies, don’t worry, neither have I until couple years ago. But that doesn’t mean we can’t learn from the guy whose company manages about $150 billion in global investments for approximately 350 of the largest and most sophisticated institutional clients.
So, here’s what the all weather investing strategy says about a simplified diversified portfolio. Last week I shared a video where I read a book about gold.
According to Ray Dalio, gold should be a 7.5% part of your portfolio. You know what else should find 7.5% in your portfolio? Commodities! Some of you may be asking, OK, what’s a (good) commodity? I, like many, drink coffee every day. So coffee is one commodity. You need fuel to drive your car, like many, so oil is another commodity.
Coffee and oil have been around for a while, and so have most of other commodities, however in the past 20 years, world has changed a lot, and Internet became ubiquitous. Also when it comes to commodities, it’s good to find those where you have some industry knowledge and experience. According to Investopedia, domain names are a hot commodity!
With people like Paul Stahura and Frank Schilling leading the new domain extension program, you don’t have to worry about domain names dropping out of this category for at least another decade. My recommendation for good domain names, buy and hold. In 10, 20 or 30 years, some of those will be worth a fortune.
I am putting money where my mouth is, so recently I started building my domain portfolio. Should have done it earlier, but like many, I feel into the trap of “it’s too late”. This is me building my domain portfolio http://duskic.com/domains
It’s no surprise I am interested in four letter .com domains. Compared to three letter .com domains, they are like the silver (trading mostly in low hundreds). The three letter .com domains would then be like the gold, trading in low to mid five figures.
So that got me thinking, how does real gold work? Why some of greatest financial minds advise investing in gold? Last year I read Tony Robbins, Money: Master the Game where Ray Dalio shared his formula for accumulating wealth, known as the all seasons strategy.
Among other things, gold was in his portfolio and he also explained how 50% stocks and 50% bonds isn’t necessarily the right asset allocation. Why? Because history has shown that stocks handle 95% of the risk and bonds only 5%. So the percentages should be different, and there should be some gold in there. Why? I’ll give you sneak peak on one of my takeaways, since the US Dollar is off the gold standard, price of gold per ounce went up 3000% since 1971.
Anyway, I thought to myself… Gold, that sounds easy, it’s a simple chemical element. Hence James Rickards, The New Case for Gold and my 5 takeaways after listening to this audiobook.
As for the recording itself, I was in Crikvenica and my microphone died after barely few months and 10 videos… I recorded this video without the microphone, what can I say, show must go on.