| How to build an investment portfolio

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Setting up your portfolio is as individual as setting up your dream car to get to the destination you want – which won't be the same as someone else's, writes Hannes Viljoen.

Setting up your portfolio is as individual as setting up your dream car to get to the destination you want – which won't be the same as someone else's, writes

Boiling down to a sentence an intensely complex endeavour, such as building an F1 car, is a recipe for failure. But here goes. Throughout the book, it is clear there are two opposing forces constantly battling each other when designing a car, namely downforce and drag. The objective of this F1 race is to finish. The pace the driver is comfortable with is up to him and the team principal. Still, we want to reduce the possibility of an unwanted outcome – a crash, engine or mechanical failure, etc. – to an absolute minimum, whilst finishing the race.

These are not the only additions you can make to your portfolio. Bonds, infrastructure, property , private equity, commodities, farmland, art, wine, etc. can all add unique features to your car for the race you want to drive. About two years ago, I was driving to work. After the first traffic light, turning off the highway, the double-lane road was set to merge into one.

 

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