Kevin is very busy with answering the press’s questions. See there is a book coming out about his success as a financial guru, and he is sharing his portfolio with the world!
His Portfolio:
60% in Vanguard Total Stock Market Index
30% in Vanguard Total International Stock Index
10% in Vanguard Total Bond Market Index
With this portfolio he beat the S&P 500 by over three percentage points, and 95% of money managers to boot. Oh, by the way, he’s ten-years-old and started investing years ago- in the second grade!
I guess this is what happens when your dad is a certified financial planner, who is writing a book "How a 2nd grader beat Wall Street". On one hand it’s outlandish, but on the other- shouldn’t we all be so lucky? His father, Alan, says in an interview with Paul and Don on Sound Investing that since Kevin is a kid, he actually is better at following basic financial advice than most grown ups!
For example, his son doesn’t check his portfolio every day, he isn’t emotionally attached to his investments, and he doesn’t listen to the Jones brag about their new hot stock tips. He also understands that there are two basic rules of investing: 1) Don't put all your eggs in one basket 2) Don't play a loser's game (i.e. don’t pay a lot of fees).
These simplicistic, almost kindergarten-level lessons have enabled him to start a nest egg that will most surely grow into a comfortable college fund, first house fund, and retirement fund in the coming years. Anyone else think he’ll be replacing John Bogle?
If you’d like to listen to the whole interview on Sound Investing, you can download it here. Also, I’d recommend checking out the Marketwatch article that highlights his and other lazy portfolios performance.
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