100 Level

It All Begins With Saving

Any book, blog, manuscript, or discussion related to investing starts with saving.  Apply "The Golden Rule of Investing."  Simply stated, save as much as you can as early as you can.  Begin saving as early in life as possible.  When teaching young folks the importance of the Golden Rule, I presented them with a simple spreadsheet.  Here are the essential … [Read More...]

“Delta Factor” – What is it and is it useful?

Context is essential when developing an argument, and that is what this post on the "Delta Factor" is designed to do.  Rather than use ETFs in the "Delta Factor" argument, I selected 20 well-known stocks so I could dip back to the late 1900s for data.  Many ETFs we use did not exist in the late 1900s and early 2000s and most that did lack the necessary historical data … [Read More...]

300 Level

Dividend Aristocrat Stocks

In contradiction to the many recent posts on the benefits of index and passive investing, I go against my own advice with the publication of this list of dividend aristocrat stocks.  This list might be of interest to Mosaic Investors who wish to add a few individual stocks to the core of their index oriented portfolio. The following information is not available for publication elsewhere. … [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

Portfolio Performance: 12 November 2010

Portfolio Performance Data Table Not only did many of the portfolios lose ground, as measured by IRR, most also showed a decline in the Sortino and Retirement Ratios. This again demonstrates just how difficult it is to outperform a broad market index such as Vanguard's VTSMX fund. Below is the table of performance. Overall, we are still doing quite well in meeting our goals, but it has been a … [Read More...]

Active vs. Passive Investing: Part 2

If you missed the first in this Active vs. Passive series of blog posts, I suggest you go back to this entry and print out the article, Active vs. Passive Investing Returns: Does Passive Outperform?  The second major point of the article focuses on indexers changing the subject and setting up straw-men arguments. "Indexing (passive) is the most appropriate strategy for retail … [Read More...]

400 Level

Asset Allocation: Why Select This Mix of ETFs?

Gauss is the newest portfolio launched (12/27/2011) here at ITA Wealth Management.  While the annualized performance is a respectable 25%, it still lags both the VTSMX and ITA Index benchmarks as it took time to populate all fifteen equity and bond asset classes.  The broad market was in a positive mood during the launch phase and as a result, the portfolio fell behind the … [Read More...]

Point & Figure Graph Indicators

Point & Figure graphs are useful for identifying ETFs that may be a potential buy.  P & F charts are one of the metrics I use as a clue for potential buying (holding or selling) opportunities.  Below I show examples that illustrate the four basic conditions.  I am looking at the slope of the line, positive or negative, and whether or not there has been positive or negative … [Read More...]