Udemy

Create a simple, cheap, and diversified investment portfolio

Name: Create a simple, cheap, and diversified investment portfolio
Availability: InStock
Rating: 4.5 (446 reviews)

4.5(446)10k students

Korshub's take

A No-Frills Case for Index Investing

This course distills Lars Kroijer's long-running argument that most investors cannot reliably beat the market, and that chasing outperformance usually just adds cost and risk. Instead of picking stocks or funds, it walks through the reasoning behind a much simpler approach: hold one low-cost world equity index tracker alongside a low-risk asset, weighted to match your personal risk tolerance.

What You'll Cover

Why beating the market consistently is so rare
The case for a single global equity tracker over multiple funds
How to balance equity exposure with a low-risk asset
Practical steps for implementing the portfolio with real ETFs

Who it's for: anyone managing personal savings, pensions, or retirement funds who wants a straightforward, low-fee alternative to the mutual fund industry. At just over thirty minutes, it's a fast, practical primer rather than a deep dive.

About this course

Lars Kroijer’s investing video series. This course is based on the premise that you are highly unlikely to beat the market, or to be able to pick an investment fund that outperforms the market consistently for you, which only 1 out of 10 funds do over a ten year period. We explain why accepting this premise is important, and then walk through the theory behind this investment philosophy, and how there is a super simple, cheap and powerful alternative way to manage investments that don’t imply that you are somehow an investment superstar. The course is based on a practical implementation of optimal portfolio theory.

You only need to buy only cheap world equity index tracker plus low risk asset and think about your risk personal risk levels. The course will also help you avoid paying large unnecessary fees to the financial sector and highly likely leave you much better off in the long run. The course also describes how you can implement the cheap and optimal portfolio from a practical perspective using index tracking investment products like ETFs that are available to virtually all investors, and thus avoid the much higher fees of the mutual fund industry.

The structure of the course is as follows:

1. Introduce the concept

2. Convince investors of the low likelihood of being able to beat the markets

3. Explain why you only need one world equity index tracker for your equity portfolio

4. Outline how a portfolio combining this equity exposure with a low risk asset in proportions to suit your risk profile is the simplest and best portfolio for most people.

5. How you actually go about implementing the portfolio with specific examples of products.

This course is useful for anyone with savings and investments who is thinking about pension, retirement, or simply securing their financial future, and generally worry about the best way to manage their assets. It is a short 30+ minute course with some backup material and ultimately the concepts are described in great detail in Lars Kroijer’s book on the topic, “Investing Demystified” (Financial Times Publishing). More on Lars Kroijer's homepage