One should only invest in companies that one knows and understand, says investment legend Warren Buffett.An investment strategist shows the protagonists from the series “Sex and the City” what that could look like based on their preferences, needs and demands.
Should desire or ratio determine investment behavior? The future is unpredictable and the market can hardly be beaten, as stock exchange history shows.It is therefore advisable for investors to follow the standard theory of investing passively (in listed index funds), following the “buy and hold” strategy and diversifying the risks as broadly as possible.That should pay off in most cases.But the desire and the frustration remain for the investor – in the long run, the interest in investing and in companies and products could suffer.
Many investment icons, including Warren Buffett, swear by actively investing and picking individual stocks to beat the market.The star investor only relies on companies whose business model he understands and whose products he knows.His private equity firm Berkshire Hathaway achieved a return of more than 40% in 2021.
But not every investor cares and, like Buffett, understands the business of railroads, US banks, and insurance companies.
To show how individual portfolios could be built up, Ben Laidler, chief strategist at the online broker eToro, thought about what their portfolios might look like for the four protagonists of the successful series “Sex and the City”.
Laidler is a big fan of the successful series, the first episode of which was first broadcast 24 years ago and which also led to two full-length films.The strategist chose the women from the cult series because the fifth season of the series recently started.With the thought: “I can’t help but wonder…” New York sex columnist Carrie Bradshaw (Sarah Jessica Parker) takes the audience on an extravagant and frivolous journey through the Big Apple again.
As different as the four series heroines are, as differently are their stock portfolios – all of them have a strong connection to the USA, the home of the characters.But they all follow a golden rule: focus on diversification, i.e.pay attention to variety and spread! Because what applies to fashion cannot do any harm when it comes to investments.
But the selected stocks are only the “core idea” – that is not enough for broad diversification.
The “fashion ladies” could also use index funds for this purpose.
Carrie Bradshaw
The fashion icon is known to be a real shoe fanatic.Stilettos by Manolo Blahnik, Christian Louboutin and Jimmy Choo are an integral part of your wardrobe – and should not be missing in your portfolio.Capri Holdings (CPRI) stocks, which include Jimmy Choo, are a must-have for this reason.But of course the New Yorker doesn’t just rely on fashion companies in her portfolio: she has been writing her columns and books on a MacBook since the beginning.Your choice would therefore certainly fall on Apple shares (APPL).
As a trendsetter, Carrie naturally moves with the times.The new ways of consuming content or doing online shopping would therefore probably be exactly her thing – just like the shares of companies like Netflix (NFLX) and the online fashion shops Farfetch (FTCH) and Shopify (SHOP).
Charlotte York-Goldenblatt
As the most conservative of the four friends, Charlotte relies on traditional brands like Tiffany.That is why she holds shares in LVMH.As a former art dealer, she would also invest in the Swiss company MCH Group, which runs Art Basel, one of the world’s most renowned art fairs in Basel, Miami Beach and Hong Kong.
And she would certainly also read up on new topics such as digital art and the potential of non-fungible tokens (NFT).
Miranda Hobbes
The self-deprecating, sometimes cynical Miranda has both feet on the ground.The lawyer is a tough career woman whose portfolio consists primarily of more traditional, solid companies such as Microsoft (MSFT), Mastercard (MA) and Walt Disney (DIS).But she would also have ESG topics relating to renewable energies, solar energy and electromobility on her radar.Companies like First Solar (FSRL), Vestas Wind Systems (VWS) or Tesla (TSLA) would therefore fit well into Miranda’s portfolio.
Companies that are founded and run by women, such as Estée Lauder (EL) or the event management service Eventbrite (EB), should not be missing in the portfolio of the power woman.
Samantha Jones
She is the most self-confident, loudest and most colorful of the clique.Because her outfits like to be sexy, her choice falls, as with Carrie, on the shares of Capri Holdings (CPRI), because the luxury brand Versace is also part of the company portfolio.Samantha is also the most open and willing to experiment of the four: Consequently, she could invest in shares in Church & Dwight Co.(CHD) – the company’s brands include, for example, the sex toy manufacturer Trojans.
The titles of the dating platform Bumble (BMBL) and investments in crypto currencies such as Bitcoin (BTC) or Ethereum (ETH) could also be entirely to their taste.
This asset allocation should not satisfy all series lovers – because they are into other sequel stories.Resourceful asset managers should therefore soon present a model portfolio for Walter White, the main actor from “Breaking Bad”.The physics teacher, who turns into a meth cook out of financial difficulties, is likely to rely primarily on laboratory equipment suppliers such as Thermo Fisher and Danaher.
Walter White should also like the titles of General Motors.
He drives a fancy Pontiac Aztek after all.The fans of “Game of Thrones”, on the other hand, invest their money in stocks of metal construction companies such as Acerinox and clothing manufacturers such as Canada Goose – because: “Winter is coming”..
