The Beta Post

Passive income, personal finance and fintech.

Why I use gearing

In pursuit of excessive returns I use gearing. In this post I will explain why I believe this is rational, and calculate the effect this can have on my portfolio. But keep in mind that the calculations are heavily influenced by the expected long term return of the market, which I base on historical returns.

Portfolio expectations

In a previous post I wrote about what I could expect as the long term return of the market, which I found to be 7.5% per annum. In this post I will discuss what this implies for my portfolio return, and highlight some of the other variables that may alter the terminal value of my portfolio.

Estimating long term returns

As I'm building this portfolio I do need to have some expectations for the future. Something to keep me motivated throughout the years of this journey. To some extent my portfolio will follow the market, and I've therefore established some estimates for the long term return in the market. And to do so I've looked to the past.

My tax regime

My portfolio is subject to two tax models with quite a different effective tax rate. My stock screening is therefore heavily influenced by which tax model is in effect, and in this article I will explain the difference between them.

Welcome to The Beta Post

I used to be an active investor, always chasing the hot stock and unreal returns. I was simply dreaming of getting rich fast. My focus has since changed, and The Beta Post will be my journal for my new strategy: building a long term portfolio.