
224 The f as t ro ad d ow n
You will notice that the above portfolio excludes things like real estate,
hedge funds, private equity/venture funds, commodities, etc., which
often constitute well-publicised success stories and form an integral
part of endowment-type allocations. For the right investor those
investment opportunities can add greatly to a portfolio, but in terms
of putting together a simple and generic portfolio for the ‘no-edge’
investor some caution is warranted. Remember that:
V
The excluded types of investments are typically very illiquid and
particularly in times of stress there can be huge discounts if you ...