PE is kind of funny. Many people totally shy away from it. Me too so far. Some see it as an investment miracle. Often friends who have spoken to brokers for investment funds shortly beforehand. They often come back down to earth after the investment.
I find it quite interesting the way you wrote the article. Especially that you focus more on shares and etfs, which is basically PE via proxies. The advantage for me would be that as a layman it is very difficult to distinguish good PE from bad PE. From what I've heard so far, the latter variants are more likely to be sold to small investors.
Higher returns are also related to the fact that the investor has less influence. In the case of PE funds, you don't know what's behind it and there's a lot of crap in PE, and in the case of PE companies, you have little influence on the investments.
At least that's my understanding.
I'm not invested myself, but I understand that the PE market is huge. In this respect, it doesn't hurt to keep an eye on it.
I find it quite interesting the way you wrote the article. Especially that you focus more on shares and etfs, which is basically PE via proxies. The advantage for me would be that as a layman it is very difficult to distinguish good PE from bad PE. From what I've heard so far, the latter variants are more likely to be sold to small investors.
Higher returns are also related to the fact that the investor has less influence. In the case of PE funds, you don't know what's behind it and there's a lot of crap in PE, and in the case of PE companies, you have little influence on the investments.
At least that's my understanding.
I'm not invested myself, but I understand that the PE market is huge. In this respect, it doesn't hurt to keep an eye on it.
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@SchlaubiSchlumpf
I find it amazing what the companies have been able to implement in recent years. I'll keep an eye on everything and probably decide in favor of one of the companies. I like the idea of investing in other levels with high returns.
And one or two dividends don't hurt either, in some of the worse years they were over 6% $BX
I heard about "Nao" through my post and Instagram, where you can invest €1000 in PE.
But I'll have to take a look first, I can well imagine the risks and high costs.
I find it amazing what the companies have been able to implement in recent years. I'll keep an eye on everything and probably decide in favor of one of the companies. I like the idea of investing in other levels with high returns.
And one or two dividends don't hurt either, in some of the worse years they were over 6% $BX
I heard about "Nao" through my post and Instagram, where you can invest €1000 in PE.
But I'll have to take a look first, I can well imagine the risks and high costs.
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@Therapeut The former sounds attractive to me too, of course. If I were you, I would also try to find a few expert opinions. Sometimes there are non-systematic reasons for past over-returns, which are not necessarily repeated.
As far as I know, the reporting obligations are more lax in PE than in AGs. This makes it more difficult to distinguish good from bad. This increases the risk and would be a reason for me as an investor to demand excess returns. Or would be a good reason for an excess return. But as always, risk does not mean that returns will increase. On the contrary, returns are often based on risks. Which doesn't mean that it can't be worth taking them.
That would be interesting for me too. Although I'm already very wildly invested (with a strategy) and am unsure whether I want to complicate my portfolio further 😂
As far as I know, the reporting obligations are more lax in PE than in AGs. This makes it more difficult to distinguish good from bad. This increases the risk and would be a reason for me as an investor to demand excess returns. Or would be a good reason for an excess return. But as always, risk does not mean that returns will increase. On the contrary, returns are often based on risks. Which doesn't mean that it can't be worth taking them.
That would be interesting for me too. Although I'm already very wildly invested (with a strategy) and am unsure whether I want to complicate my portfolio further 😂
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•@SchlaubiSchlumpf
I have also read about the opacity of the key figures. In some cases, only the money invested is stated in the return figures; the money that could not be invested is not included.
Yes, I understand that. I also try to invest in an uncomplicated way but with my own taste.
Unfortunately, I then spend several hours, even passively in my head, making my decisions😂
I have also read about the opacity of the key figures. In some cases, only the money invested is stated in the return figures; the money that could not be invested is not included.
Yes, I understand that. I also try to invest in an uncomplicated way but with my own taste.
Unfortunately, I then spend several hours, even passively in my head, making my decisions😂
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@Therapeut you're allowed to do that 😁 it's often about money that you work for months or even years.
I think in PE they also like to talk about factors. I haven't quite figured it out yet, but it sounds a bit like ignoring compound interest.
I think if you are well informed, you can also do PE. Above all, it's important not to just follow some advisor with advertising brochures, ask yourself why this advisor is taking so much time for you and how he or she knows that this investment is good, while the broad market doesn't know this.
And without an advisor, you always have to ask yourself why you expect an excess return. Something must always be going better than many others think.
I think in PE they also like to talk about factors. I haven't quite figured it out yet, but it sounds a bit like ignoring compound interest.
I think if you are well informed, you can also do PE. Above all, it's important not to just follow some advisor with advertising brochures, ask yourself why this advisor is taking so much time for you and how he or she knows that this investment is good, while the broad market doesn't know this.
And without an advisor, you always have to ask yourself why you expect an excess return. Something must always be going better than many others think.
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