What is a Lazy Portfolio?

Discussion in 'Share Investing Strategies, Theories & Education' started by venger0, 14th Feb, 2008.

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  1. venger0

    venger0 Active Member

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    Hi all :)

    been reading up on all the old posts.. and came across a reference to the "Lazy Portfolio". :)

    What is the definition of a lazy portfolio..?

    i did a quick google.. but came up with vague references to it but no clear definition.. hope someone here who knows can share it with me :)

    thanks!
     
  2. Smartypants

    Smartypants Well-Known Member

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    Hi ya Venger0

    Haven't heard this expression myself but would assume a "lazy portfolio" would be a portfolio that is set and forget, i.e a group of shares/mgd funds that you purchase and just let it run and watch it grow over time. Buy and hold if you like.

    Obviously, you could always keep adding to the portfolio as finances permit.

    Anyway, that would be my definition of a lazy portfolio. Quite the opposite of a portfolio where you are constantly trading etc.
     
  3. The Stig

    The Stig Well-Known Member

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    My guess is Indexing??

    As you know you can use ETFs or mutual funds.
     
  4. Simon Hampel

    Simon Hampel Founder Staff Member

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    "Lazy portfolio" is one of Steve Navra's terms - although I have heard others refer to it as well.

    It means that you have equity sitting there not being fully utilised.

    eg. equity in your property could be leveraged against to invest in shares, shares could be margined to gain extra leverage, cashflow from shares could be used to fund other investments ... etc etc.

    I'm not sure if it is mentioned in the Living on Equity series of articles ? (my link here is too slow to check it right now).
     
  5. Smartypants

    Smartypants Well-Known Member

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    Hi Sim.

    I've heard Steve refer to Lazy Dollars but not lazy portfolio.

    Not disagreeing with you (wouldn't dare lol), and in your example, it probably means the same thing anyway.
     
  6. Glebe

    Glebe Well-Known Member

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    A lazy portfolio is one that isn't leveraged to the eyeballs :)

    I thought having a non-lazy portfolio was a great idea up until 6 months ago ;)
     
  7. transit

    transit Well-Known Member

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    yes i think you're right. Steve refers to lazy equity, not a lazy portfolio (at least i haven't heard him mention that term). With lazy equity i think Steve is describing the typical mum & dad who has paid out their PPOR but not utilising the equity by drawing it out and investing it elsewhere..... i think he has 5 different ways to make the equity work.
     
  8. venger0

    venger0 Active Member

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    Thanks Glebe :) yes.. it did seem like a good idea then.
    BTW, thanks heaps for sharing your alternative portfolio to dkmc's in his 'rejigging' thread. It really helped me restructure my portfolio. Spent years as a (lousy) stock picker - looking forward to life as a passive investor :)

    Ta,

    PS: i'm going to use a similar asset allocation - but will up the % on SLF. What was your rationale for allocating only 10%?
    IIRC dkmc had at least 15% in local LPTs and 10% in international property.
     
  9. Andrew Allen

    Andrew Allen Well-Known Member Business Member

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    The way I use the term describes an approach to investing that appears lazy. You diversify over a few areas using passively managed funds and rebalance periodically.

    Lazy Portfolio's