HindeSight Letters | Robot VS Human Investing - why not have the best of both?
investing, dividends, robo investing,
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Robot VS Human – why not have the best of both?

machine vs human

Robot Investing Versus Human Investing.

The Investing landscape has changed somewhat recently with the rise of the ‘robo advisor’, a machine that can quickly and easily advise you where to put your investments at a fraction of the cost of a traditional, human, advisor.

Companies like Nutmeg are springing up and wooing the mainstream lower and middle tier income bracket with their ease of use and fractional costs compared to other, more opaque and costly human advisors.

The reasoning is sound. Computers make good, less emotional choices in a world of black and white, right and wrong only – no middle ground or grey. They can then allocate for a person and will be able to make them forget about the emotion and just watch the returns come in.

But hang on just a second. There’s still something to be said for human investment strategy and advice. You can’t program a hunch, a snippet of news or the additional elements that data can’t provide, or the wisdom of having ‘skin in the game’. Ok so let’s say 90% of the investment managers are not worth their fees (as everyone is saying) that still leaves some humans that CAN and DO beat the machines.

On one hand – ease of use and *relatively low costs for robots. On the other, more potential gains through real management of the funds. I am using ‘real’ because the traditional word is ‘active’ but it’s been shown time and again that the word is just for show, so ‘real’ denotes actual management.


Some perspective here. Nutmeg is growing fast and they offer portfolios that deliver from 1: ‘preserving capital and minimal potential loss’ all the way to 10: ‘Aims for high growth by accepting very high volatility’

Over 3 years Nutmeg’s ‘Fully Managed’ Portfolio 1 has: +3.7% | +1.2% annualised. Nutmeg ‘Fully Managed’ Portfolio 10 has: +30.8% | +9.4% annualised.

Nutmeg Portfolio Visual

Where’s the perspective? HindeSight Dividend Letter is delivering 7.23% (abs return) with VERY low volatility and no catastrophic loss of capital (by that we mean 25% loss). So we’re comparable to the Robo Portfolio 1 rating for volatility on Nutmeg, with returns of their number 8 rated robo portfolio and would be accepting ‘higher volatility’ as a cost of investing in that range equivalent returns – +7.3%.


The HindeSight Dividend Letter gives you the best of both worlds. We use our trademarked Hind Dividend Value Strategy (HDVS) that’s a computer rating system for shares that was built over years and tested to destruction. It does a lot of work to weed out the best dividend plays that are then delivered to our humans at Hinde Capital. They then have to look at what’s on offer and they research the traditional way to see what the most compelling dividend play for the month as ‘real’ portfolio management making sure to asset allocate and understand the true mix of the portfolio.

The HindeSight Dividend Letter is a powerful mix of both humans and machines, working in tandem to achieve the right outcome – an annualised target of +10% on your portfolio beating the index with no catastrophic loss of capital.

Best of all – you are in complete control. You can invest, or not. Sell or not. Heed our buy and sell alerts by reading the monthly investment letter that not only shows you the thinking behind the decision, but also teaches you why we are doing what we’re doing. So, unlike a Nutmeg account where you’ll not see the reasoning behind the decisions, or learn why the markets do what they do, thus keeping you bound by ignorance, we let you be your own master of Investing. With us you’ll learn what asset allocation is, why it’s important, why shares do what they do, what a ‘macro’ viewpoint is and so much more – all for a few hours a month.

Learn. Invest. Learn more. Invest more.

  1. Give money to an IFA, at a high fee and hope they manage your money well.
  2. Give money to Nutmeg and get returns or volatility but learn nothing about investing.
  3. Subscribe to HindeSight, make money and learn about investing so you’re better informed about the decisions that make investing something you can do forever.

Make the right choice – Click here to subscribe now to get a 90-day trial.

 

 

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