A Robo Advisor for Expats and Cross Border Employees Worldwide
"Beat Warren Buffet with the #1 Robo Advisor for Higher Returns!"
Buffet, known as "The Oracle of Omaha" is a wise sage. He is known worldwide as one of the best stock pickers of all time. He based his stock picks around Benjamin Graham's "value investing" which basically means picking up stocks which are undervalued.
But, even Warren Buffet admits that stock picking is risky, requires a lot of research and often Warren Buffet visits the company he invests in. He has even recommended his wife and children toput their inheritance into index funds.
Here is a quote from his annual newsletter on Feb. 28th, 2017:
"My advice to the trustee couldn't be more simple: Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500index fund. (I suggest Vanguard's.) I believe the trust's long-term results from this policy will be superior to those attained by most investors — whether pension funds, institutions or individuals — who employ high-fee managers."
What are Index Funds?
Index funds were invented by Jack Bogle. Jack is the founder and retired chief executive ofThe Vanguard Groupwho run Vanguard Mutual Funds as well as Vanguard ETFs and have $4 trillion dollars under management.
In 1975, influenced by the works ofEugene Fama,Burton Malkiel, andPaul Samuelson, Bogle founded the Vanguard 500 Index Fund as the firstindex mutual fundavailable to the general public.
Warren Buffet calls him a "hero"
"If a statue is ever erected to honor the person who has done the most for American investors, the hands-down choice should be Jack Bogle"
"For decades, Jack has urged investors to invest in ultra-low-cost index funds. In his crusade, he amassed only a tiny percentage of the wealth that has typically flowed to managers who have promised their investors large rewards while delivering them nothing – or, as in our bet,lessthan nothing – of added value.
"In his early years, Jack was frequently mocked by the investment-management industry. Today, however, he has the satisfaction of knowing that he helped millions of investors realize far better returns on their savings than they otherwise would have earned. He is a hero to them and to me."
What Has This Got to Do With the Money Pouch?
Well, we are not trying to reinvent the wheel, we are just building on the work of Buffet, Bogle, modern portfolio theory techniques and adding smart algorithms for efficient stock trading.
Exchange Traded Funds or ETFs are a cheap, low-cost way to invest in index funds. Click here to learn "What are Exchange Traded Funds".
The Money Pouch builds on Buffet and Bogle's work, by investing in low-cost ETFs and rebalancing them monthly to keep the risk to return more consistent. This should offer your investment portfolio more protection when stock markets fall by reallocating your portfolio to bonds or cash.
We often use low-cost Vanguard ETFs in our portfolio. We then use Minimum Variance Optimisation and other algorithmic techniques to reduce and trade on your behalf automatically. No need to look at complicated technical analysis or stare at stock charts. It is all done for you.
"The Money Pouch uses Jack Bogle's passive investments using index trackers and Warren Buffett's value investing to pick the optimal stock/bond portfolio using low-cost ETFs. This is then traded automatically on your behalf"
Great, but how is The Money Pouch targeting
higher returns than other Robo Advisors?
"The Money Pouch uses "soft leverage" to control risk and target higher returns"
Our portfolios are leveraged at 1.6 times the amount invested by using a Margin Account. No more than 40% of your capital is risked at any time. Learn more here about leverage and margin accountsat the bottom of the FAQs page.
In this way, we can control risk, whilst targeting higher returns. It isn't rocket science and we aren't reinventing the wheel, but it should improve performance and beat the S&P500 index.
In this way, we should be able to consistently outperform the stock market!
"The Money Pouch invests in REAL companies such as Coca-Cola, Apple, Google and Microsoft. It isn't a reckless gamble on Forex or commodity robots"
The brightest ideas are often the simplest!
Why Invest with The Money Pouch?
You have worked hard for your money. Now take the next step and let The Money Pouch invest your cash wisely. Our computer trading algorithms will automatically buy and sell stock and bond ETFs on your behalf. Our roboadviser works for you 24 hours a day, 7 days a week and automatically rebalances your portfolio to maximise returns, whilst minimising risk.
What are the Benefits of Using The Money Pouch?
Set and Forget
Our software manages your investment account for you 24/7, around the clock. We’ll do all the work for youso that you can focus on the other things in life that really matter to you.
Investing shouldn't be expensive. We provide investment management at a fraction of the cost that traditional hedge fund managers and financial advisers charge.
Maximise the Risk/Reward Ratio
We use Modern Portfolio Theory, automated computer trading algorithms, monthly rebalancing and risk profiling to maximise returns on your money.
We manage your account with taxes in mind because minimising your taxes is a key part of maximising your long-term investment returns. Ask us about our trust accounts and tax-efficient pension structures to reduce your exposure to tax
Automatic Dividend Investing
Any dividends paid out will be automatically be reinvested in the strategy.
There are no lock-ins which mean you can cash out of your investment portfolio at any time. Also, you can top up your investment account at any time, especially to take advantage of "Dollar Cost Averaging" and "Value Investing" if stock market prices begin to fall.
Proven Investment Methodology
Our service relies on consistent and overwhelming research, which shows that index funds significantly outperforms actively managed portfolios the majority of the time. We use ETFs that track indexes for the major asset classes in our portfolios. Each ETF is chosen by our investment research team based on its relative cost, risk/reward return, tracking error and market liquidity.
You can read our investment white papers here.
You can read more about our monthly rebalancing here.