dealtn wrote:I'd still ask the same question in my original (unanswered) reply.
It's a good question and I don't know how to answer it.
I'm not a fan of volatility put it like that.
Best real world example I can think of?
My portfolio is below.
If I'd held it for the past 12 months I'd have returned around 27%.
If I'd held 50/50 Fundsmith and Capital Gearing Trust for the past 12 months I'd have returned around 10%.
Which one feels riskier?
To me it's the 50/50 because one is 50% "pure" concentrated equity exposure.
Stock name % Weight Sector
1 Capital Gearing Trust Plc Ord GBP0.25 35.9% [N/A]
2 Personal Assets Trust PLC Ord GBP12.50 35.0% [N/A]
3 Ruffer Investment Company Red Ptg Pref Shs GBP0.0001 13.1% [N/A]
4 Baillie Gifford US Growth Trust plc Ord GBP0.01 8.7% [N/A]
5 Scottish Mortgage Investment Trust Plc Ord GBP0.05 7.2% [N/A]