A 50% Position
I usually have 1–10% positions; here’s a 50%er
Size matters. Mine typically start out just over 1% and can grow to 10% (10% of cash is what I’ve long suggested for Bitcoin). This one is different; personally, I think this one should be 50%.
Google (GOOG) (GOOGL), Meta (META), and Apple (AAPL) were recently among the companies funding Frec, a new platform democratizing access to a modern financial tool previously accessible to wealthy investors with private bankers or family offices. It offers direct index portfolios such as my favorite, their S&P 500 index for 10 bps of fees.
Long-term, the best store of assets is in large cap US equities. The best vehicle is direct indexing due to its low cost and tax efficiency. It is simply better than index funds or ETFs because it can more efficiently harvest tax losses at the individual stock level.
Caveat
You really have to give it at least a decade to fully capture the dominant advantage of an all equity fund like this.
Conclusion
For efficient long-term compounding, I would put half of your money in an S&P 500 direct index. You get a $250 sign up bonus which pays for around twelve and a half years of fees on the original deposit. It costs you $20 per year of fees which you’ll more than make back in tax savings over time.
Then I would hold the other half to that standard. Invest in other parts of the globe, capital structure, or market caps only if you have good reason to think that they’re substantially better.
TL; DR
To get started, open an S&P 500 direct index account with a $20k deposit today.
