100 Level

Are You Warren Buffett or Charlie Steadman?*

For every Warren Buffet there are a hundred Charlie Steadman's.  While nearly every investor has heard of Buffett, few remember Charlie Steadman. Is there a reason for this short memory? “Until he died at age 83 in 1997, Charlie Steadman burned through investors’ assets at a rate unseen in the fund business since the Great Depression–and, we hope, never to be seen … [Read More...]

Index Freeloaders

Take a few minutes to read and smile while reading this article about freeloading index investors.  As passive investors, we need to be grateful for active investors. … [Read More...]

300 Level

Optimizing QPP Analysis Asset Allocation Models

Some years ago I tested a Mean-Variance Optimization (MVO) software program that was designed for William Bernstein.  Manual data entry and knowing if it was accurate proved to be a problem.  Much to my surprise, I recently received an e-mail from the developers of Quantext Portfolio Planner (QPP), pointing me to an article that an Excel™ guru developed an optimization spreadsheet that links to … [Read More...]

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...]

200 Level

A Challenge to Active Management

Active vs. Passive Management Scores of papers and blogs have been written about the merits of passive vs. active management.  I've contributed my share and here is one of my earlier posts.  Readers will find more articles by moving over to the right sidebar and looking up Passive vs. Active blogs.  There are over 25 posts on this subject. When you read about active management outperforming … [Read More...]

Response to “The Trend is Your Fickle Friend” Article

If you have been reading the Comments on this blog you saw the reference to the Hussman Funds article, "The Trend is Your Fickle Friend."  After reading the article I concluded that my response would be too long for another comment, so I decided to give attention to the article with a full blog post. In the early part of Hussman's article, he points out the problems associated … [Read More...]

400 Level

Bullish Percent Indicators: 24 August 2012

Little changed this week in either the market or sector Bullish Percent Indicators.  Check for differences in the two tables shown below by looking at the last two numbers in each column. … [Read More...]

Strong Market And The Risk Reduction Model

The current strong market is serving investors well if they made no changes in their portfolios.  Those five portfolios where I am using the ITA Risk Reduction model will suffer as a result of the robust domestic and recovery of international market.  Nobody claimed the ITARR model works all the time.  It is designed to prevent major losses during bear markets and that is not what … [Read More...]