End of the Year Project

End of the Year - Dr Trance Bus 172A Inv Fund Prof Pagani Dr Trance Investment Policy Our portfolio tailors to an older individual who is looking

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Dr. Trance Bus 172A Inv. Fund. Prof. Pagani 05/13/2009 Dr. Trance Investment Policy: Our portfolio tailors to an older individual who is looking for little risk and decent returns with a 10 year time horizon. We are risk averse and feel that with a short time horizon we are unwilling to invest too much money into anyone asset class. Cash on hand will stay around 30% throughout the life of the portfolio and we will diversify by investing in futures, stocks, bonds, and mutual funds. Liquidity needs of the portfolio are low as we refuse to take money out of our investments unless absolutely necessary. Our investment philosophy is consistent with that of the beliefs of Warren Buffet, believing that we will not make an investment into a stock or mutual fund unless we are willing to hold that position for many years. We manage the portfolio ourselves and will not hire someone to do so for us, with exception of the required investment in mutual funds. We feel our knowledge and experience should be enough for reasonable returns. Our portfolio is a passive fund and we focus on investments unaffected by market timing. We feel we are not strong enough investors to be able to time the market and understand that a few small mistakes can lead to weak returns. Again, asset allocation consists of stocks, bonds cash, futures, and mutual funds. We invest the majority of our fund into
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This note was uploaded on 09/08/2010 for the course BUS 172A at San Jose State University .

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End of the Year - Dr Trance Bus 172A Inv Fund Prof Pagani Dr Trance Investment Policy Our portfolio tailors to an older individual who is looking

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