100 Level

A Third Investing Path: Mosaic Investing

We hear and read about active and passive investing, and which style is most beneficial to the majority of investors.  There is a third path which is a combination of both the active and passive styles and I call it Mosaic Investing.  Mosaic Investing, as I use the term, is where one constructs the majority of the portfolio around index vehicles such as non-managed index ETFs, and then adds a few … [Read More...]

Ten Biggest Investor Mistakes – #10

  Wealth Management – Mistake #10: Investors do not monitor their portfolio adequately.   Rare is the investor who can place their hands on the Internal Rate of Return (IRR) of their portfolio. An even smaller percentage of investors know how well their portfolio is performing with respect to an appropriate benchmark. The third measure, risk of portfolio, reduces the … [Read More...]

300 Level

TLH Spreadsheet: Rebalancing Addition

A new feature has been added to the TLH spreadsheet and one will find it on the Dashboard worksheet.  So far, I only have it available in the Bohr spreadsheet.  This is what it looks like and the idea is to give the user additional help in knowing how many shares to purchase to bring the portfolio back into balance.  In column J we find the different asset classes available for the … [Read More...]

Portfolio Performance For Week of April 20th

The good news this week is that ten of the eleven portfolios gained ground on the VTSMX benchmark.  Only the Newton did not pull ahead of the U.S. Equities index, but remained even.  What was a little strange is the fact that eight of the eleven portfolios lost a fraction of a percent to the ITA Index, our customized benchmark.  By pulling ahead of the VTSMX I assumed the portfolios … [Read More...]

200 Level

Cut the Fees

Fees matter!  Read this blog post by Geoff Considine and you will see why I am a nut when it comes to reducing fees.  They make a huge difference over a lifetime of investing.  When I began this investment journey many years ago, it was not unusual for mutual funds to charge an 8.5% load fee on all new money going into the fund.  What a scam. Usury is a better term.  Even … [Read More...]

Starting From Scratch: The Logic Behind the “Swensen Six” Portfolio

When it comes to building a portfolio, David Swensen's general guidelines provide numerous strong starting points.  His portfolio satisfies requirements of numerical diversification, equity orientation, and functional diversification.  While Swensen does not recommend specific tickers in his book, Unconventional Success, he lays out basic guidelines I consider vital to portfolio … [Read More...]

400 Level

New Feature: ETF Evaluation Model

ETFs Positioned to Buy The following data table is something new, although I did mention the possibility I would be putting together such an ETF evaluation.  In the following table I've combined a number of variables such as the 195-Day EMA and Chaikin Money Flow and quantized them into a percentage that you see in the right-hand column.  Platinum membership available for $5.00 per … [Read More...]

Managing Portfolio Uncertainty: How Does It Work?

In an effort to improve performance results and reduce portfolio volatility, a Tactical Asset Allocation (TAA) plan has been activated for both the Maxwell and Euclid portfolios.  Checking the latest Portfolio Performance data table, we see these two portfolios are trailing the VTSMX benchmark, an unacceptable condition.  Keep in mind this is an extreme strategy, but it is based on … [Read More...]