What I’ve Done Right With My Portfolio

And an unscientific look at whether it was the result of luck, skill, or both. [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_improvingfinances&utm_content=46522&elqTrackId=6d3496de5e4d4cc89e30fcf966816c33&elq=52a25d5ed07a493f8578b239d506e66a&elqaid=46522&elqat=1&elqCampaignId=22900) [Improving Your Finances] Improving Your Finances with [Christine Benz]( [Christine Benz] I’m a big believer in displaying humility and acknowledging when I’ve made mistakes. In that spirit, I decided to use [last week’s column]( to shine a spotlight on my own investment track record, which, uh, hasn’t been perfect. By my own acknowledgment, I hold too much company stock and cash, and I probably don’t own enough in bonds as I should given my age. I’ve also dropped the ball on a few tax-related items over the years, holding a tax-inefficient mutual fund in our taxable account and sometimes delaying IRA contributions and conversions until the 11th hour. But you know what? Despite those bobbles, my husband’s and my plan is well in hand. That’s because we’ve gotten some big things right. We saved early and often. We’ve enjoyed strong market performance over our 35-year-plus investing horizon (so far), stuck with an equity-heavy stance, and resisted the urge to clutter things up with niche investments. We kept it simple instead. In [this week’s article]( I recounted some of those victories, and gave my best guess as to whether they owed to luck, skill, or both. In the end, the balance tilts more toward luck than skill. Speaking of skipping niche investments, [John Rekenthaler delved into whether so-called “liquid alternatives” have been worthwhile additions to investors’ portfolios](. The finding? Not really. In another well-argued column in favor of simplicity, my colleague [Amy Arnott recently looked at whether employing a multi-fund portfolio—specifically, owning value and growth funds and rebalancing among them—had the potential to deliver a return edge versus a single large-cap blend fund](. The conclusion? Meh. While Amy found a slight advantage accrued to the rebalanced value/growth portfolio over very long time horizons, that return edge wasn’t anything to write home about. And of course it entailed extra work and discipline. At the same time, it has been hard to ignore that growth has outpaced value by a huge margin again in 2023: The Morningstar Growth Index has gained about 32% while its Value counterpart has picked up just a 7% increase. Jeff Ptak and I discussed that trend in [our recent conversation with Dave Sekera]( Morningstar’s chief U.S. investment strategist and a regular on Morningstar.com. We also touched on what have been called the market’s “Magnificent Seven” and whether the S&P’s concentration in its top names is cause for concern. I hope you’re enjoying the summer so far! With warm regards, Christine Benz [What I’ve Done Right With My Portfolio]( Christine Benz shares some of her investing wins. Was it luck or skill? [Read More]( Share: [facebook]( [twitter]( [linkedin]( ADVERTISEMENT [media]( [media] [Do as I Say (Not as I Do)]( On my failings as an investor. [Read More]( [Is Hedging with Nontraditional Investments Worth the Effort?]( Most hedges do not make enough money to justify their inclusion in investors’ portfolios. [Read More]( [Why Large-Blend Funds Should Outweigh Value Plus Growth Funds in a Portfolio]( When it comes to style investing, the sum of the parts isn’t greater than the whole. [Read More]( [A Retirement Readiness Checklist]( Evaluating your retirement plan can be more manageable if you break it into smaller steps. [Read More]( [7 Steps to Estimating Your In-Retirement Cash Flow Needs]( Rules of thumb may be too high for affluent retirees with high savings rates, but healthcare costs are a major swing factor. [Read More]( [Dave Sekera: Taking the Market’s Temperature]( Morningstar’s chief U.S. market strategist weighs in on the value/growth divide, the ‘Magnificent 7,’ and what’s under- and overvalued today. [Listen Now]( Listen Now Get the latest investing insights and market updates with [Morningstar’s podcasts]( available on your iPhone, iPad, Android, PC, or smart speaker. Stay connected: [twitter]( [facebook]( [linkedin]( [instagram]( [YouTube]( [Apple News]( [View online]( | [See all newsletters]( | [Share your feedback]( [Unsubscribe]( from this newsletter. Or update your [email preferences](. © 2023 Morningstar, Inc. All Rights Reserved. 22 W. Washington St. Chicago, IL 60602