The Investment Scientist

Archive for February 2016

Retirement securitymutual funds .jpg
Like most investors out there, I buy stocks (mostly stock funds) primarily to build my retirement security.

The whole world’s productive assets (TWWPA)
Unlike most investors out there, I don’t pick individual stocks. I construct a portfolio of low cost funds that represents the whole world’s productive assets. For the sake of simplicity, let’s give it a symbol – TWWPA.

As long as human race exists, TWWPA will keep growing in fundamental value by the simple fact that we (human race) are growing in number and we are demanding ever increasing living standards. The market value of TWWPA will fluctuate, but the fundamental value will not.
The more TWWPA you own, the more secure is your retirement.

Why I am happy
Every month, I invest $10,000 to buy TWWPA. Since stock prices have fallen about 15% due to irrational fear of oil price dropping and China not building as many ghost towns, I get to own more TWWPA with the same amount of money. Fear will dissipate sooner or later, but the more TWWPA I own will remain mine.


That’s why I am happy!

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Michael Zhuang is principal of MZ Capital, a fee-only independent advisory firm based in Washington, DC.


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