Thursday, February 12, 2009

Temasek portfolio down 31% - My lesson

r u a pedestrain?

The sub-headline said - "Measured against other indexes, Singapore's two state-owned investment companies did better."

What is that sub-headline supposed to mean? Shouldn't the Temasek team, with the best of qualification, experience and market knowledge/access, be doing better than any index?

May I cite the following info for my record:-
Temasek Holdings - down 31%
MSCI World Index - down 38%

The 31% drop is equivalent to $60bio drop to $127bio.

Looking at own potfolio which suffered a bigger decline than MSCI's and given the above information, what shall be my future investment strategy?

Since the best fund managers at Temasek team are beyond my reach, the next best option would be to invest in MSCI World Index Fund. Since it is an index fund, it should be quite efficient. Another plus point is that I am also able to bring my future portfolio performance closer to that of Temask's.

P/S - Fool.com's strategy of investing in the widest index fund possible. It is now the time for me to it seriously.

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