Bangkok: Summary of portfolio allocation strategy 'Forward-Midfield-Defense' style by Dr. Niwes + 60 years of truth: SandP 500 VS Berkshire Hathaway. As the Thai economy begins to saturate, finding "Superstock" stocks domestically becomes difficult. Dr. Niwes Hemvachiravarakorn therefore made a major adjustment to his investment policy. Transitioning from an aggressive, near-perfect style to one focused on diversification with the goal of an average annual return of 10%. Using a "3-3-3 football team" formation, divide the money into three equal parts (approximately 30% each).
According to Thai News Agency, the first part of the strategy, termed as "Forward," focuses on Vietnam with a target of 10-15% annual return. This component is driven by growth and breakthroughs, as Vietnam is recognized for its fast-growing economy and relatively inexpensive stock prices. Dr. Niwes has chosen to invest in value stocks in advance, anticipating long-term investment funds to flow into the market in the coming years.
The second part, referred to as "Midfield," involves Global Equity and the US SandP 500, targeting an annual return of around 10%. This component aims to maintain stability and diversify risk across global businesses. The SandP 500 was chosen for its historical strength, as it encompasses the largest companies in the United States with global operations. Despite this, Dr. Niwes is currently holding cash, waiting for a market correction due to high current prices.
The third component, "Defender," is centered on Thai dividend-paying stocks, with a target return of 6-8% per year. This part of the portfolio functions to protect the portfolio and generate consistent cash flow. Dr. Niwes suggests focusing on high-dividend stocks, such as certain bank stocks, to receive steady dividends over the long term.
Dr. Niwes also examined the historical compound return analysis of Warren Buffett's Berkshire Hathaway portfolio versus the SandP 500 index from 1965 to 2025. The analysis revealed two key truths: no one can indefinitely outperform the market as their portfolio grows, and the SandP 500 has consistently provided an average return of approximately 10-11% per year over the past 60 years. This makes it a reliable long-term investment option for the average investor.
In conclusion, the strategy emphasizes stepping back for stability, diversifying for safety, and leveraging the power of compound interest in robust global assets.