Investment portfolio: western principles of formation and management

Abstract

Trends in the dynamic development of the financial market makes it
necessary to explore the many aspects of finance, including investment in
securities. The investment process is one of the complex mechanisms in
finance. The difficulty lies in the fact that the parameters and investment
criteria are always changing and filled with new forms. The article deals
with the investment in assets to generate income and minimize risk. On
the basis of the study identified the main investment principles of R.Dalio
and U.Baffet. The principles R.Dalio considered investment rules based on
four economic factors and individual portfolio taking into account these
factors. Also, the economist uses the principle of rebalancing, which is a
key element in investing. Everyone knows Warren Buffett has many rules
of investing, buyout is very useful not only for private investor but also for
large institutional investors. The proposed principles Dalio and Buffett’s
investment rules will help private investors in the efficient operation of the
financial market.