Pros & Cons
- Follows tried and tested strategies of some of the greatest investors of all time, drawing from the success of these Value Investment strategies
- Removes the chance for emotional decision making on 50-85% of the portfolio whilst keeping idle hands busy on the balance
- Passive investments are geared to target outperformance
- Holds a steady baseline of ETFs that track the market to relieve pressure on performance of other holdings
Cons
- The strategy needs to be ahered to for a minimum of 5 years, but preferable longer, to avoid losses caused by market timing
- Whilst the AVI Strategy aims to minimise emotional trading it does not mitigate them. A good temperament is required.
Whilst the above lists provide insight into some of the more abstract positives and negatives of the AVI Strategy it goes without saying that past performance is not an indicator or future results and that invested capital is at risk (refer to disclaimer).
The biggest positive of them all
Whilst the AVI Strategy has been geared towards keeping idle hands busy there will be many investors out there that would like to be hands-free altogether. This being the case, the most recommended option is to invest in ETFs on a regular basis. However, if your focus is on risk managed market outperformance there are other options, included my own portfolio on eToro.
Whilst the decision is entirely your own I do manage this strategy myself via eToro and can copied via the following link: https://www.etoro.com/people/davidbumpstead