100 Level

Establishing An Investment Philosophy

Before buying a stock, mutual fund, ETF, or any other investment, it is best to think through what you want your portfolio to accomplish.  For most savers, the portfolio is expect to grow in size and eventually throw off sufficient income to see one through their retirement years and perhaps pass something on to children and a favorite charity.  Exactly what is my investment … [Read More...]

Preparing For The Deficit Debate

What options are available to investors as we approach the deficit debate?  For many years raising the debt limit was a non-event.  However, it is a different political climate and we now need to cope with a large number of "non-negotiators" which in turn bring uncertainty to the financial markets all over the globe.  To deal with these uncertainties, here are some possible suggestions as to how … [Read More...]

300 Level

Valuation Stocks: Looking for Undervalued Companies

This morning I planned to post a list of what I call "Valuation Stocks" or a small collection of companies that meet particular valuation standards.  Below is the list of stocks that passed the numerous screens.  Unfortunately, the program crashed before I was able to capture a screen shot of the screens.  When I downloaded a clean copy of the program, my screens were … [Read More...]

Holy Grail Portfolio Revised

Revising the "Holy Grail" portfolio is an extension of the blog entry posted earlier today.  The following QPP analysis is somewhat constrained by two new corporate bond ETFs (VCIT and VCLT) that have not been in existence three years.  Nevertheless, Platinum members will find this portfolio of interest.  The broad guidelines for putting this portfolio together is as … [Read More...]

200 Level

Beginner’s Portfolio

If just starting out as an investor, the following portfolio is a slight modification from the Faber-Richardson Ten Portfolio as published in their book, The Ivy Portfolio.  I replaced GSG, a commodity ETF with a gold ETF, GTU.  Instead of VB, I inserted IWN which provides a value tilt to the portfolio. This material is not available for publication elsewhere on the Internet. … [Read More...]

Portfolio Performance: 6 April 2012

It has been several weeks since I last published a Portfolio Performance data table as I was away on a family emergency.  The following table contains current data as all the dividends for the first quarter are included in these results.  There was consistency up and down the portfolio columns.  In general, since the last post both the portfolios and the VTSMX benchmark lost a … [Read More...]

400 Level

Risk Defined

Portfolio Risk Risk is a messy word as it carries so many different meanings in the investing world.  In the most general sense, it means we don't know what is going to happen.  Here are several specific meanings of the term.  We will begin by defining "systematic" and "specific" risk. 1.  "Systematic" risk is risk we cannot avoid if we seek returns higher than the interest rates from a money … [Read More...]

Historical Basis for ITA Risk Reduction Model

A few days ago I was asked if there was any historical data supporting the ITA Risk Reduction (ITARR) model.  The quick answer is - no.  The model has been operational for about four months or insufficient time to build any sort of record.  However, I did use a similar model successfully during the 1980s.  There were a few differences in that model vs. the ITARR model.  … [Read More...]