Join our investing community

What is a Lazy Portfolio?

Discussion in 'Investing Strategies' started by venger0, 14th Feb, 2008.

  1. venger0

    venger0 Active Member

    Joined:
    30th Jan, 2008
    Posts:
    40
    Location:
    WA
    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

    Joined:
    2nd Jun, 2006
    Posts:
    226
    Location:
    NSW
    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

    Joined:
    3rd Dec, 2007
    Posts:
    190
    Location:
    Central Coast NSW
    My guess is Indexing??

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

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
    Posts:
    4,619
    Location:
    Sydney, Australia
    "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

    Joined:
    2nd Jun, 2006
    Posts:
    226
    Location:
    NSW
    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

    Joined:
    15th Aug, 2005
    Posts:
    932
    Location:
    Sydney, NSW
    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

    Joined:
    1st Jan, 2006
    Posts:
    58
    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

    Joined:
    30th Jan, 2008
    Posts:
    40
    Location:
    WA
    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. Insight

    Insight Brisbane Buyers Agent

    Joined:
    24th Sep, 2006
    Posts:
    229
    Location:
    Brisbane
    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