“Essentially, the portfolio is collateral to borrow funds for investing in excess of the portfolio’s total cash value. For example, an investor may gain 150% exposure to the stock market by using margin,” says Rogovy.
“The best-known investors built their fortunes over decades with careful and deliberate research, analysis and stock selection,” Rogovy said.
“Run the numbers yourself. The financial industry struggles with data integrity, and I’ve found plenty of errors in stock screeners, financial-data services, and spreadsheet templates.”
“A lot of beginner investors approach stock picking from the perspective of finding an investment that won’t lose money,” Rogovy said. “While this goal is certainly important, a better approach is to find investments that will provide the best return given the risk. Space in your portfolio is a finite resource, so it’s best not to waste it on average stocks.”
If your employer offers a 401(k) match, make sure you contribute enough to get the full match. Rogovy explained, “This is free money and is almost always more impactful than any other retirement investing decision.”
“Large institutional investors, managing billions in funds, are limited to around 10-15% of tradable stocks because of the sheer size of their portfolios. They simply can’t invest in smaller companies without moving the market or taking on significant risks.”
Asher Rogovy, chief investment officer of the New York City-based investment management firm, Magnifina, stresses that stock-based compensation can be extremely lucrative, but tends to create large tax liabilities.
“Most savings accounts in the U.S. are insured by the FDIC up to $250,000 per depositor, per insured bank,” Dutoit said. “Amounts beyond this limit are not protected by the insurance.”
One of the most underrated indicators is the NAAIM Exposure Index. This index represents the aggregate equity exposure for members of the National Association of Active Investment Managers (NAAIM). As active investors, NAAIM members respond dynamically to market conditions and investment fundamentals. Their collective positioning can provide insight into market sentiment and, potentially, future moves.
“Things like customer satisfaction, expansion plans and product strategy are much more important than forecasting the next quarter’s cash flow,” Rogovy said. “Lynch’s approach is a road map for anyone seeking to beat the market, which he doesn’t even think is too difficult.”
