100 Level

First Things First

Yesterday, I was having coffee with a friend and we were discussing Blog writing and how we try to make the information interesting and understandable. This fellow writes on an entirely different topic, but the motivations are similar. In both cases, we are interested in helping our readers. In our discussion, we both agreed that it is necessary from time to time to go back to the beginning and … [Read More...]

Portfolio Performance: 18 January 2013

One month passed since I last posted the portfolio performance data table.  While every portfolio increased in value over the last month, in many cases the benchmarks increased at a faster rate than the portfolios IRR values.  When comparing performance with the ITA Index, the Curie, Newton, Kepler, and Kenilworth gained ground on the customized benchmark.  Maintaining the same difference were the … [Read More...]

300 Level

Mosaic Portfolio Lookback – June 30, 2008

June 30 of 2008 was a period when the market was in a deep funk, and sinking.  In the following analysis we put the Mosaic Portfolio in that situation and analyze it, now knowing what happened.  What were the signals at that time?  Since the end of the first quarter, the projected return dropped slightly and the Return/Uncertainty ratio declined.  The diversification percentage … [Read More...]

Gauss Update: 14 December 2012

A number of Platinum members are tracking the Gauss and use it as a template for setting up for their own portfolios.  The Gauss is one of the ITA Risk Reduction portfolios and I'm also experimenting with Piotroski stocks.  Within the past thirty days I sold off CRAI as it dropped below the required Piotroski High F-Score of seven (7).  Currently, there are two Piotroski stocks in the portfolio as … [Read More...]

200 Level

Putting It All Together: Portfolio Construction

David Swensen writes in his "Unconventional Success" book, "Construction of a financial-asset portfolio involves full measures of science and art.  The science encompasses the application of basic investment principles to the problem of combining core asset classes in an efficient, cost-effective manner.  The art concerns the use of common-sense judgment in the challenge … [Read More...]

Portfolio Performance: 14 January 2012

This week saw absolute gains in every portfolio and relative gains against the VTSMX benchmark in five of the eleven portfolio.  Only the Newton and Bohr lost a small fraction of a percentage point with respect to the VTSMX while the Curie, Schrodinger, Kepler, and Euclid remain unchanged.  It was encouraging to see the Einstein, Kenilworth, Maxwell, Madison, and Gauss gain small amounts … [Read More...]

400 Level

Portfolio Risk: Do You Know The Value?

This morning I was in a discussion involving indexes, benchmarks, and portfolio risk.  In one exchange, I asked the reader if he knew anyone who could tell him what risk was involved in their portfolio.  Asking the question demanded an answer from me and the portfolios I track.  Here are the latest risk percentages from the seven portfolios available to Platinum members. The black … [Read More...]

Momentum-Optimization Model

If you have not checked into ITA for several weeks, you are missing critical information and I hope you will carefully read this blog post as this marks a revision of the ITA Risk Reduction Model.  While I will not take the time to explain every detail in one blog post, readers will see the Optimization-Momentum Model in action over the next weeks and months.  Over time I want to demonstrate how … [Read More...]