dimanche 15 janvier 2017

Distribution of assets

We talk a lot about stocks here. But most of us have some other things that constitute our "personal value".

My distribution of assets is approximately as follows:

Stocks: 50%
House (market value minus mortgage to pay): 40%
Forest land: 6%
Cash: 2%
Others (car, furnitures): 2%

I'm not exactly sure about the value of my house and my forest land so the distribution is not precise. But the reality is probably not to far.

Like many people, I don't see my house as an investment. I like to have my place, without any neighbour too close. I like to have my own ground even if I don't spend that much time there except for mowing the lawn (which is not something I really like). But anyway, the value of my house could decrease by 75% and I think I would be almost indifferent. Same thing for my forest land which was bought by my father 25 years ago and bought back by me some years ago.

There's absolutely nothing scientific in that distribution. I don't plan to have a specific percentage of stocks VS my house. Well, actually, my goal is to have a very, very high percentage of my value in stocks. Once the foundation of my life is there (a house, an OK car, a little comfort in the house), I don't plan to own anything more. I don't plan to buy a block of flats or a Tesla.

If I project myself 20 years in the future, I don't see any more possessions than I have now, except much more money invested in stocks.

My goal in life probably looks boring to many people...

2 commentaires:

  1. On the surface people's focus on making money or accumulating a huge stock portfolio may seem boring. For many of us, what's it's really about is peace of mind and gaining a sense of freedom. It's nice to meet a regular guy who can tell you: even if I lost my job today, my lifestyle would not be affected. I could not work for five years and I'd be fine. That's what many of us aim for rather than being able to buy STUFF.

    Buffett does not buy a lot of expensive shit. Being wealthy is about not having to do work that you do not like and not having to work with people you cannot stand. That's his idea of wealth.