100 Level

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...]

Searching for the Strategic Asset Allocation Holy Grail

Establishing a strategic asset allocation (SAA) plan for a portfolio requires at least two major decisions.  1) What asset classes should be included in the portfolio.  2) What percentage of the total portfolio is allocated to each asset class.  Decision number two is the more difficult of the two.  Where do I come up with the various asset allocation plans found in the various … [Read More...]

300 Level

TLH Spreadsheet Hint

Photograph: Colter The following video/audio clip is a small hint of how to avoid the manual update on the Holdings spreadsheet.  Users of the TLH spreadsheet will find this hint useful. … [Read More...]

Portfolio #3: Ages 36 – 55

This may be the most difficult portfolio, of the five in this series, to construct for several reasons.  1) It covers a significant working and investing period.  2) The early years of investing from ages 36 - 55 are critical so one does not want to give up too much in the way of return.  However, the portfolio cannot be too aggressive during the tail end of this age bracket as the … [Read More...]

200 Level

Newton Portfolio Review: 9 August 2011

Review of the Newton Portfolio was moved forward as shares of VEU, VBR, VOT, and VOE were purchased last week.  Dividends also came in from EMB, TLT, BND, HYG, and TIP.  Below is the current Strategic Asset Allocation plan for the Newton.  The ETF additions were purchased in such small amounts that asset classes remain under target.  This is an intra-day Dashboard.  I … [Read More...]

Five Essential Financial Directives

Five Essential Financial Guidelines   1) Pay down credit card debt and never, ever borrow from a bank using a credit card. There is no way you will earn as much year after year through investments as you are paying interest on credit card debt. Simply put, pay off the credit card balance in full each month. There is no interest rate to hate as much as credit card interest. 2) Save as … [Read More...]

400 Level

Tactical Plan for Maxwell & Euclid Portfolios

As mentioned in an earlier post, I need to set out a plan of action so as to pull the IRR values of both the Maxwell and Euclid portfolios ahead of the IRR for the VTSMX benchmark.  Both portfolios are lagging, in part due to inattention and carrying too much cash.  The follow approach is designed to turn this around. This material is not available for Seeking Alpha. … [Read More...]

Bullish Percent Indicator

Regardless whether it is an index or sector Bullish Percent Indicator, nearly every section of the market saw a decline this past week.  The Dow Jones Industrial Average (DJIA) joined the defensive teams, just another indicator the U.S. Equities market is weakening.  All indexes except for the NASDAQ are still hovering in the over-bought zone (70% or above) and we know this is unlikely to … [Read More...]